Canada’s exports rose in October-report
2022.12.06 14:14
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Canada’s exports rose in October-report
Budrigannews.com – According to data released on Tuesday, the depreciation of the Canadian dollar was largely responsible for the rise in imports and exports in October from pharmaceutical products.
According to Statistics Canada, the country’s trade surplus with the rest of the world increased to C$1.21 billion (888.53 million dollars) in October, slightly exceeding analysts’ predictions of a surplus of C$1.20 billion.
According to Statscan, exports increased by 1.5% as more gold bars and coins, medicinal products, and other goods were shipped to the United States. Exports were up 0.1% by volume.
Imports increased by 0.6%, but volume decreased by 0.9%. The gains were driven by metal and non-metallic mineral products, automobile parts, and energy products imported from oil-importing countries.
“A weaker Canadian dollar contributed to the widening of Canada’s merchandise trade surplus in October. However, “trade volumes appear to have added to growth in the month,” according to a note from BMO Capital Markets economist Shelly Kaushik.
Since a significant portion of Canada’s trade is conducted in U.S. dollars, when the Canadian dollar depreciates against the U.S. dollar, converted values rise. According to Statscan, Canadian imports and exports decreased by 2.2% and 1.3%, respectively, in October.
Stephen Brown, senior Canada economist at Capital Economics, stated, “The essentially unchanged level of export volumes in October, despite a big boost from higher agricultural exports, suggests that the sector is beginning to struggle amid weaker external demand.”
Canola and wheat contributed to the 10.2% increase in October’s farm, fishing, and intermediate food product exports to a record high of C$5.5 billion. Higher products of canola, oilseeds and wheat likewise added to a 25.4% leap in commodities to China, which hit a record high of C$3.3 billion in October.
The Canadian dollar was down 0.3 percent on the day, trading at 1.3625 to the US dollar, or 73.39 cents.
