Fri, Apr 11th - 1:44PM
Canadian economists stunned as exports grow
Canadian economists were stunned today as Canadian exports grew 3.8% in February despite a recession in the USA according to a new report from Statistics Canada. The increase resulted in $39.3 billion in exports in February.
Canada also imported less in February, down 2%, to $34.4 billion, creating a roughly $5 billion monthly surplus, most of which is due to Canada's trade surplus with the United States (which in February soared to $8.1 billion).
Normally during a recession people would slow down on their consumption, but because the USA's economy is largely credit based they continue to keep consuming anyway and just go farther into debt. Hence the current subprime credit crisis.
Sector by Sector
All sectors reported higher exports in February, with energy and automotive shipments making up two-thirds of the increase.
Automotive exports rose 11.4 per cent to $5.6 billion, the biggest jump
since December 2006. Higher shipments of passenger cars powered most of
the growth, although exports of motor vehicle parts rose 5 per cent and
shipments of trucks and other motor vehicles increased 7.4 per cent.
Energy exports rose for the fourth month in a row, rising 3.8 per cent
to a record $9.7 billion, driven by higher shipments of crude petroleum
and natural gas. Exports of petroleum and coal products, electricity
and coal slipped.
Exports of industrial goods and materials rose
for the second month in a row, up 2.8 per cent to $8.9 billion, and
exports of metals and alloys hit record levels, buoyed by gold prices,
which hit a historic high in February.
Meanwhile, metal ore exports rose 12.8 per cent, largely as a result of record exports of iron ores, concentrates and scrap.
Chemical and plastics exports declined 4.3 per cent to $2.7 billion.
Exports of machinery and equipment rose 1.5 per cent to $7.5 billion, pushed by aircraft and other transportation equipment.
Forestry product shipments were up 3.9 per cent, to $2.2 billion, the
first rise in 11 months. Agricultural and fishing products rose 1 per
cent to a high of $3.1 billion, on record high canola exports.
The majority of import sectors lost ground in February, dragged down by
widespread declines in energy products. Imports of machinery and
equipment slipped 0.6 per cent to $9.5 billion, while automotive
imports advanced 2.7 per cent to $6.3 billion, led by motor vehicle
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