The trade balance in Canada turned back into deficit in May and analysts at the National Bank of Canada expect it to remain like that in the coming months. According to them, exports should continue to pick up.
“The progression of international goods trade was only slightly up in May thanks to an increase in imports. The latter were propelled by metal/non-metallic products which reached an all-time high and come off very elevated prices for these commodities.”
“Looking back at the big picture, total trade (exports + imports) was up a tepid 0.2% in May.”
“The terms of trade continued to improve in the month and now sit at their highest level since July 2008 and not far off from the record.”
“Imports should continue to be strong thanks to demand stemming from nationwide reopening and one of the best vaccination campaigns in the world. Though, exports should also pick up again as production capacity increases and global demand returns thanks to improving sanitary situations, we expect the trade balance to remain in deficit in the coming months.”
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.