Canada's Trade Surplus Doubles Forecast on Energy Exports Despite Auto Import Decline
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Canada's trade surplus gained twice as much as forecast in September, reaching $2.04 billion. Higher crude oil prices helped drive export gains.
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Energy products, mainly crude oil, led the export growth due to OPEC+ production cuts extending. Wheat exports also rose over 50% thanks to favorable weather and an early harvest.
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Motor vehicle exports declined for the sixth straight month despite U.S. strike disruptions, Canada's biggest trade partner.
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Total imports increased 1.0% driven by passenger vehicles, though volume growth indicates an overall decline in prices.
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The trade data indicates economic growth stalled in Q3 amid aggressive rate hikes. Growth is expected to remain muted until end of 2024.