Canada posted its second-biggest trade deficit on record in April partly due to a weak performance by nonenergy exports.
Canada’s trade deficit for April narrowed to $2.97 billion from a revised $3.85 billion in March, Statistics Canada said Wednesday.
The consensus is that the US trade deficit, to be released Tuesday, will be at US$42 billion in May, from US$40.9 billion in April.
A strong and strengthening US dollar is being blamed by several analysts for continued weak export volumes globally.
Nearly half of exporters and investors say they are optimistic about growing their businesses over the next six months, according to a survey by Export Development Canada, the federal lending and credit agency.
“In spite of weak data and increasing concern about the US economy, Canadian exporters still seem to be expecting improve– ment in the global trade arena,” Peter Hall, EDC’s chief economist, said Thursday.
Just when many analysts appeared to be losing hope of a turnaround in Canada’s export sector, many of the companies shipping their goods outside the country are seeing better times ahead — notwithstanding current economic headwinds, said the Financial Times June 25.
International Trade Conditions
Canadian Exports
• About 45 per cent of respondents expect business opportunities to improve in the coming months, up from 33 per cent in the EDC’s fall 2014 survey — and the highest percentage in the past 10 years — based on the agency’s semi-annual report.
• However Canadian exports declined 0.7 per cent in April, said StatsCan, as prices fell 1.2 per cdent while volumes rose 0.5 per cent. Imports fell 2.5 per cent, as volumes fell 1.8 per cent and prices declined 0.8 per cent. Nonenergy exports fell 2 per cent in April, on a 1.8 per cent decline in volumes. By contrast, energy sales abroad increased 5.9 per cent, mostly on an 8.3 per cent gain in volumes. Prices fell 2.2 per cent.
Lumber
• Total exports by Canadian Sawmills (except Shingle and Shake Mills) to all countries was $3 billion, a 15.3 per cent increase over $ 2.6 billion for the first four months of 2014.
• Canadian sawmill product exports to the US rose 13.3 per cent to $2 billion, from $1.8 billion in January to April the previous year.
• Exports to China were up 20.1 per cent to $481 million.
British Columbia Exports
• BC forest product exports totalled $4.28 billion in April, up 12.7 per cent from $3.80 billion one year ago.
