Friday, January 13, 2012

American Trade Funds Deficit with Rest of the World. Canada Trade Surplus Balloons to $1 Billion in November.

November was a great month for Canadian exports. The international economy is doing Canada well as exports climbed to over $40 billion in November 2011, and imports dropped to $39 billion. That left Canada with a trade surplus of over $1 billion for the month, and leaves the country with more cash coming in the door to spend on its own people and economic recovery.

Analysts on average had been expecting a DEFICIT of about $500 million, so this turnaround is great news for the economy. Where did the burst come from? Energy exports climbed over 6 percent to around $6.4 billion. In particular, exports to the United States climbed by almost 2 percent, creating a surplus with our southern neighbour of over $4.5 billion. So what does this mean? Basically our sales to the United States are funding a deficit with the rest of the world.... Thank You American consumption! 

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