Canadian Trade Deficit Fell Off

The trade deficit in Canada slumped to a five-month low during the month of October sustained by the recent rebound in the declining exports. According to the report of Statistics Canada, the country’s  trade deficit came in at $1.48-billion in the month. It further shrank from September’s $3.36-billion which is considered the least downturn since May that break the four-month trade downfall.

The reversal was interrupted by the rebound in exports, which seems gloomy in the past months after it accelerated on its record highs in spring. Exports increased by 2.7 percent month on month in terms of value and also gained support by strong prices which boost volumes by 1.2 percent. Moreover, the recovery of exports indicates optimism towards the Canadian economy for the last quarter in 2017.

The drop of exports has been regarded a major factor that dragged Canada in Q3, upon the sluggish GDP growth pace during the first half of the year. Moreover, exports could possibly buoy by the soft loonies, as it lowered down by 5 cents versus its American counterpart during early September and by the end of October.