Sat, 28 Jan 2023

Canadian exports rise in October amid weak Canadian dollar

Robert Besser
10 Dec 2022, 00:07 GMT+10

MONTREAL, Canada: Data released this week showed that Canada's exports rose in October, mainly driven by pharmaceutical products and the weak Canadian dollar, while imports also increased.

Statistics Canada said that in October, the country's global surplus trade grew to C$1.21 billion, slightly above forecasts of a C$1.20 billion surplus.

Statscan also said that exports rose 1.5 percent due to higher exports of medicinal products, gold bars and coins to the US, adding that exports were up 0.1 percent by volume while imports also rose 0.6 percent, but were down 0.9 percent by volume.

In a note, Shelly Kaushik, an economist at BMO Capital Markets, stated, 'Canada's merchandise trade surplus widened in October, with a weaker Canadian dollar providing a helping hand. Still, trade volumes look to have added to growth in the month."

Statscan further said that a large share of Canada's trade is conducted in US dollars, meaning converted values are higher with a weak Canadian dollar, adding that when expressed in US dollars, Canadian exports were down 1.3 percent in October, and imports decreased 2.2 percent.

"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," said Stephen Brown of Capital Economics, as quoted by Reuters.

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