Canada’s trade deficit rose in September to CAD 1.26 billion, driven by declining exports.

TraderKnows
TraderKnows
5 hours ago

Canada's trade deficit reached CAD 1.26 billion in September, primarily due to a decline in exports, making economic challenges more apparent in a high interest rate environment.

Canada's trade deficit in September exceeded market expectations, reaching 1.26 billion CAD (about 908 million USD), marking the seventh consecutive month of a trade deficit for the country. According to data from Statistics Canada, the deficit was mainly due to a decrease in exports to major trading partners (excluding the US), especially a significant decline in metal and non-metallic mineral product exports. Although total exports in September increased slightly by 1.4%, export prices fell by 1.5%, leading to a slight overall decline in export value by 0.1%.

The trade data for September was also affected by the digital transformation of the assessment and revenue management by the Canada Border Services Agency, leading to a greater reliance on estimation methods. Analysts had previously expected a deficit of 800 million CAD, while the trade deficit in August was revised upward to 1.47 billion CAD.

Specifically, the largest decline in September was in the export of metal and non-metallic mineral products, dropping by 5.4%, with unprocessed gold shipments falling by 15.4%. On the import side, the total import value in September decreased by 0.4%, primarily due to a 12.7% reduction in imports of metal and non-metallic mineral products, reflecting a slowdown in domestic demand and weak economic growth. High interest rates further exacerbated these challenges. Since June, the Bank of Canada has consecutively reduced rates four times, with the current policy rate at 3.75%. The market anticipates a potential 50 basis point rate cut at the next monetary policy meeting on December 11.

Data shows that in September, Canada's total export value was 63.88 billion CAD, and the import value was 65.14 billion CAD. Despite the overall trade deficit, Canada's trade surplus with the US increased from 7.82 billion CAD in August to 8.29 billion CAD in September. The US is Canada's largest trading partner, with imports from the US accounting for 60% of all imports, a 0.8% increase from the previous month. Meanwhile, the Canadian dollar slightly strengthened against the US dollar to 1.3876, and the yield on Canadian two-year government bonds rose slightly to 3.134%.

商务合作 Skype ENG

商务合作 Telegram Eng

Risk Warning and Disclaimer

The market carries risks, and investment should be cautious. This article does not constitute personal investment advice and has not taken into account individual users' specific investment goals, financial situations, or needs. Users should consider whether any opinions, viewpoints, or conclusions in this article are suitable for their particular circumstances. Investing based on this is at one's own responsibility.

The End

Wiki

Balance of Trade

The trade balance, also known as the balance of trade, refers to the difference between the total exports and imports of a country or region over a certain period (usually one year). It is a significant indicator used to measure the international trade status of a country or region.

Organization

Risk Warning

TraderKnows is a financial media platform, with information displayed coming from public networks or uploaded by users. TraderKnows does not endorse any trading platform or variety. We bear no responsibility for any trading disputes or losses arising from the use of this information. Please be aware that displayed information may be delayed, and users should independently verify it to ensure its accuracy.

Contact Us

Social Media

Region

Region

Contact