With crude oil prices still in freefall, the deterioration in the monthly trade balance to a deficit of $0.6bn in November, from $0.3bn, is unfortunately only the start of what could develop into a much bigger shortfall. For a big net exporter of energy like Canada, which could only keep its trade balanced when oil prices were above $100 per barrel, the slump to $50 is very bad news. The Canadian dollar's decline will help, but the trade deficit is still going to widen markedly over the next few months.
Become a client to read more
This is premium content that requires an active Capital Economics subscription to view.
Already have an account?
You may already have access to this premium content as part of a paid subscription.
Sign in to read the content in full or get details of how you can access it
Register for free
Sign up for a free account to:
- Unlock additional content
- Register for Capital Economics events
- Receive email updates and economist-curated newsletters
- Request a free trial of our services