The Canadian dollar continued to drop on Thursday, sinking below 92 cents US before recovering in early trading.
The currency is at lowest level since the fall of 2009, hammered by strong economic news in the U.S. and lower oil prices, as a widening Canadian trade deficit. At midday it was trading at 92.14...
Canada’s trade deficit with China is widening amid a slowing of raw materials exports to China, while Canadians continue to import $50 billion a year of Chinese products.
According to Industry Canada, the 2012 trade deficit with China was $31.7 billion in 2012, four times the deficit a decade ago.
Jan. 1, 2014, marks the 25th anniversary of the entry into force of the Canada-U.S. free-trade agreement (FTA), followed exactly five years later by that of the North American free-trade agreement (NAFTA). Together these events profoundly transformed Canada’s economy.
After a period of relative smoothness through the summer and fall, small business optimism dropped off substantially in December. CFIB's Business Barometer® Index fell more than three and half points to land at 62.3, its lowest level since June.
The Honourable Jim Flaherty, Minister of Finance, today reminded Canadians and investors of Canada’s fiscal and economic success story on the eve of 2014, and said he expects this track record to continue to promote trade and attract investment even amidst a volatile global economy.
