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Canada’s Trade Gap Unexpectedly Widens Ahead of Rate Decision

04 Sep 2019 09:43 | Anonymous

Canada’s trade deficit widened more than expected as energy shipments abroad declined for a second month, a sign recent export strength could be fading.

The nation’s merchandise trade gap hit C$1.12 billion ($840,000 million) in July, Statistics Canada said Wednesday from Ottawa. Economists surveyed by Bloomberg were expecting a deficit of C$350 million.

Exports fell 0.9%, led lower by a 6.7% decline in energy shipments. Crude oil exports pulled back 7.7%. And stripping away price effects, exports edged down 0.1% on the month.

While economic growth in Canada led the Group of Seven in the second quarter, the expansion was driven primarily by a rebound in oil exports after a half year of dismal growth. Rising global uncertainty amid the escalating trade war between the U.S. and China threatens the northern nation’s export prospects, a topic likely to be addressed by the Bank of Canada at its rate decision later Wednesday morning.

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