Canadian economy still strong despite recession fears April 18, 2008|
Recent economic indicators show that the Canadian economy is still robust, even in the face of an economic slowdown in the US, the country’s largest trading partner. According to figures from Statistics Canada, Canada’s gross domestic product (GDP) grew by 0.6 per cent in January, recovering from 0.7 per cent decline in December. The economic growth was broadly based and was led by wholesale trade and the manufacturing sector. Manufacturing activity overall increased 1.7 per cent in January after a 3.4 per cent decline in December. Within the sector, motor vehicle manufacturing advanced 12 per cent after falling 27 per cent at the end of 2007. Preliminary indicators for February show a continuation of the recovery for motor vehicle production albeit at a slower pace, says Statscan.
Even more surprising than the GDP numbers is a recent report on the country’s international merchandise trade for the month of February. According to a Statistics Canada report released last week, the country’s merchandise trade surplus with the world grew by more than $2 billion in February. Exports increased by 3.8 per cent while imports fell 2.0 per cent. Moreover, Canada’s trade surplus with the United States grew to more than $8.1 billion, the biggest surplus in more than one year. Exports south grew by 3.6 per cent while imports from the US fell 3.4 per cent. Exports of automotive products and energy products combined represented almost two thirds of the rise. The rising trade surplus with the US runs counter to the economic logic that suggests exports south would slow down in the face of the strong Canadian dollar.
leftnav.html
