EDC Export Performance Monitor - January 2015

Canada's trade balance dipped into deficit in November to $644 million, as exports decreased by 3.5% and imports were down by 2.7%. Weaker prices contributed about a third of the total nominal export decline. Despite this soft patch, Canada will record its first annual trade surplus since 2011 as exports are still 10.5% above last year's pace.

The decline in exports was largely broad-based, with all major merchandise categories, excepting agri-food, chemicals and plastics products, showing red ink for the month. The largest declines were in metal and mineral products, as well as in energy exports, reflecting a softer pricing environment. While machinery and equipment exports surprised on the downside, exports of automotive products were basically flat for the month, supported by strong demand in the United States.

Provincial exports were also broadly weaker this month, as was the international demand for Canada's exports among major trading partners, particularly from Europe. US demand for Canadian exports dipped in November, but the robust economic momentum building south of the border remained reflected in the strong year-to-date pace.

The full report is available on EDC website.