71471
Canada Q2 Current A/C Deficit Widens
Canada Q2 Current A/C Deficit Widens

Canada Q2 Current A/C Deficit Widens

Canada Q2 Current A/C Deficit Widens

Canada’s current account deficit widened in the second quarter of the year as the country’s international trade gap in goods expanded as imports rose, data from Statistics Canada showed on Wednesday.
The seasonally adjusted current account deficit stood at C$16.3 billion ($13 billion) in the second quarter, short of economists’ forecasts for a C$17.4 billion gap. The first quarter was revised to show a deficit of C$12.9 billion from the initially reported C$14.1 billion, Reuters reported.
Higher imports increased the trade deficit in goods to C$5.2 billion. Canada’s trade gap with countries other than the United States rose to C$15.6 billion, while its surplus with the United States narrowed to C$10.4 billion after three consecutive quarters of increases.
Total goods exports rose to C$143.3 billion in the quarter, helped by motor vehicles and parts as exports of passenger cars and light trucks increased. Shipments of metal and mineral products also lifted overall exports.
Imports rose to C$148.5 billion, making for the largest quarterly increase in nine years on widespread gains throughout the commodity sectors. Imports of consumer goods also rose on higher prices, while imports of car parts saw a record increase.
Meanwhile, the Bank of Canada estimates the nation’s economy can’t grow much beyond 1.4% before fueling inflation. In other words, Canada may be entering an era of slow growth and rising interest rates, which is not exactly a dream scenario for policy makers.
“There is no way around it,” said Perrault, “Two percent is not high compared to history, but it is compared to trend.”
In addition, fiscal stimulus may no longer be needed in an economy with no slack and low potential growth as it can accelerate rate increases and crowd out private players.

 

Short URL : https://goo.gl/hBj3Jy
  1. https://goo.gl/gZwyqx
  • https://goo.gl/AAxaNk
  • https://goo.gl/fNdwjC
  • https://goo.gl/XkyQAQ
  • https://goo.gl/P7GCC9

You can also read ...

ADB Forecasts India Growth at 7.3 Percent
The Asian Development Bank expects India’s growth to pick up...
Dow futures dropped more than 100 points in early trading, as traders returned from the long holiday  weekend to face fresh selling pressure for US stocks.
A six-day rebound in world stocks began to splutter on Tuesday...
Ghana Told to Cut High Agro Imports
The World Bank country director for Ghana, Henry Kerali, has...
Chinese ironworks are increasingly  using Australian ore, which has  a high iron content.
Global stock markets are down from their recent peaks and...
London-based Capital Economics expects the German economy to expand by 2.7% this year. This would be above the government’s  more conservative forecast of 2.4%.
The German economy is expected to improve in the next six...
Indonesia Criticizes Trump’s Protectionist Policies
Indonesia is foregoing billions of dollars on offer from...
Goldman Raises Red Flag Over US Gov’t Spending
US fiscal policy is headed for “uncharted territory.” That’s...
File picture of truckers in Buenos Aires during a demonstration last summer against the policies of Mauricio Macri.
The Argentine economy grew “close to 2.8%” last year, Guido...

Add new comment

Read our comment policy before posting your viewpoints

Trending

Googleplus