Canadian Trade Deficit Deepens
March 13, 2009
Today’s release of the latest merchandise trade numbers noted that economic conditions continue to worsen in Canada. A record deficit of C$0.99bn was recorded as exports fell by 9% month over month. The decline was led by a decreased demand for cars particularly from the US which dropped by 35% during the month. Roughly 40% of Canada’s gross domestic product is tied to international trade with three quarters of the exports sold to the US as such global economic conditions severely impact Canada in particular. Little reaction was noted in response to the weak data release as markets attentions were focused elsewhere.