“In October, Canada’s merchandise trade surplus increased, helped by a declining Canadian currency. However, trade volumes seem to have contributed to the month’s rise” according to a report by BMO Capital Markets analyst Shelly Kaushik.
Since a sizable portion of Canada’s commerce is conducted in U.S. dollars, converted values increase when the value of the Canadian currency declines relative to the U.S. dollar. According to Statscan, Canadian imports fell 2.2% and exports fell 1.3% in October as measured in U.S. dollars.
According to Stephen Brown, senior Canada economist at Capital Economics, “the almost constant level of export volumes in October, despite a significant lift from increased agricultural exports, implies that the industry is beginning to suffer with weakening external demand.”
Ottawa According to figures released on Tuesday, Canada’s imports and exports both increased in October, with the increase in imports mostly due to a decline in the value of the Canadian dollar.
According to Statistics Canada, the nation’s trade surplus with the rest of the world increased to C$1.21 billion ($888.53 million) in October, slightly above experts’ predictions of a surplus of C$1.20 billion.
According to Statscan, increased shipments of pharmaceuticals, gold bars, and coins to the US contributed to boost exports by 1.5%. Exports increased in volume by 0.1%.
Although volume was down 0.9%, imports increased by 0.6%. Gains were driven by imports of motor cars and components, metal and non-metallic mineral items, and energy products, which were supported by imported American crude oil.
“The Canadian dollar’s decline helped the country’s goods trade surplus grow in October. Nevertheless, trade volumes appear to have contributed to growth in the month “BMO Capital Markets economist Shelly Kaushik made this statement in a note.
Since a sizable portion of Canada’s commerce is conducted in US dollars, converted values increase when the C$ falls in value against the USD. According to Statscan, Canadian imports dipped 2.2% in October while exports fell 1.3% when measured in U.S. dollars.
With the support of canola and wheat, exports of agricultural, fisheries, and intermediate food items increased 10.2% in October to a record-high C$5.5 billion. Increased exports of canola, oilseeds, and wheat all played a part in the 25.4% increase in exports to China, which in October reached a new high of C$3.3 billion.
The Canadian dollar was down 0.3% on the day, trading at 1.3625 to the dollar, or 73.39 U.S. cents.