The Globe and Mail reports in its Friday edition that Canada's beleaguered energy exports roared back to life in March, leading a broad-based trade rebound that may signal a turning point in the economy's two-quarter growth slump. The Globe's David Parkinson writes that Statistics Canada reported that the country's merchandise trade deficit totalled $3.2-billion in March, only a slight improvement over February's $3.4-billion. Unlike in February, however, when both exports and imports slumped, the March numbers showed an encouraging rebound on both sides of the ledger. A 2.5-per-cent rise in imports was topped by an even bigger 3.2-per-cent rebound in the country's all-important exports. The better numbers may be a sign that the struggling economy is turning a corner, after posting little growth at all over the fourth quarter of last year and the first quarter of 2019.
"The details point to broad strength in exports, while the import side of the ledger suggests the consumer is rebounding, and business investment ended the first quarter on a positive note," Bank of Nova Scotia economist Derek Holt said in a research note. "[The trade report] supports the narrative in favour of a rebound from little Q4/Q1 growth."
© 2020 Canjex Publishing Ltd. All rights reserved.