International Trade (Nov.)

With crude oil prices still in freefall, the deterioration in the monthly trade balance to a deficit of $0.6bn in November, from $0.3bn, is unfortunately only the start of what could develop into a much bigger shortfall. For a big net exporter of energy like Canada, which could only keep its trade balanced when oil prices were above $100 per barrel, the slump to $50 is very bad news. The Canadian dollar's decline will help, but the trade deficit is still going to widen markedly over the next few months.