UPDATE 2-Canada trade deficit jumps as weak markets hit exports

Fri Jan 11, 2013 10:50am EST
Email This Article |
Share This Article
  • Facebook
  • LinkedIn
  • Twitter
| Print This Article | Single Page
[-] Text [+]

* Imports rise 2.7 percent, exports fall 0.9 percent

* Data confirms problems facing export sector

* Trade deficit is fourth highest on record

* Analysts say U.S. demand should increase

By David Ljunggren

OTTAWA, Jan 11 (Reuters) - Canada's trade deficit jumped unexpectedly in November as imports rose and exports fell, a sign that challenging market conditions are likely to have cut into fourth-quarter economic growth.

Statistics Canada said on Friday that November's deficit was C$1.96 billion ($2.00 billion), up from C$552 million in October.

The deficit, the fourth-largest on record, was much greater than the C$600 million shortfall markets had expected and reflects the continuing problems that exporters face in weak foreign markets and a strong Canadian dollar.

"The trade data was definitely disappointing although this does reiterate a well-known theme that net exports will drag on Canada's economy. We do expect that the picture should brighten somewhat in 2013," said David Tulk, chief Canada macro strategist at TD Securities.   Continued...