In November, Canada’s merchandise exports increased 2.2% and imports rose 1.8%. As a result, Canada’s merchandise trade deficit with the world narrowed from $544 million in October to $323 million in November. These recent narrow trade deficits are within the typical bounds for monthly revisions to imports and exports, reported Statistics Canada on Tuesday.
“A large proportion of import and export transactions are completed in US dollars and must be converted to Canadian dollars to compile monthly trade statistics. All other things being equal, when the Canadian dollar depreciates against the US dollar, monthly trade values expressed in Canadian dollars are higher,” said the federal agency.
“The average value of the Canadian dollar decreased 1.1 cents US in October, and then an additional 1.1 cents US in November. For those two months combined, exports were up 3.9%, while imports increased 2.2%. When expressed in US dollars, Canadian exports increased 0.8% from September to November, while imports fell 1.0%.”
Second consecutive increase in exports
Following a 1.7% increase in October, total exports rose 2.2% in November. The gain was broad-based, with 9 of the 11 product sections rising. Higher prices were partly responsible for the monthly increase in exports; in real (or volume) terms, total exports rose 0.5%, said StatsCan.
Imports post an increase in November
After edging up 0.3% in October, total imports rose 1.8% in November. The largest contributors to the monthly increase were imports of consumer goods (+3.8%); basic and industrial chemical, plastic and rubber products (+4.3%); industrial machinery, equipment and parts (+3.0%) and metal and non-metallic mineral products (+3.2%), noted the federal agency.
Shelly Kaushik
Shelly Kaushik, Senior Economist, BMO, said the weak Canadian dollar is already making its mark on the trade figures, and is expected to continue doing so in the new year. For now, the volume figures suggest a positive impact on growth to close out the year, though the possibility of U.S. tariffs add a significant risk for 2025.
Marc Ercolao
Marc Ercolao, Economist, TD, said with two months of Q4 trade data in the cards, it looks like trade will be a slight tailwind to Q4 GDP growth.
“Statistics Canada is still undergoing a major trade-related, data collection transition—so take these figures with a grain of salt,” he said.
“The outlook for Canadian trade in 2025 is cloudy at best. Incoming president Trump takes office in a couple of weeks and is still threatening a 25% tariff on all Canadian exports. Our base case is that Canada largely avoids a full-scale implementation of Trump’s tariff plan, given our energy-heavy relationship with the U.S.—though we acknowledge that any tariff levied against Canada has negative consequences for economic growth. There may be signs that manufacturers and retailers are front-running potential tariffs, as total import and export volumes have risen over the last couple of months.”
Mario Toneguzzi
Mario Toneguzzi is Managing Editor of Canada’s Podcast. He has more than 40 years of experience as a daily newspaper writer, columnist, and editor. He was named in 2021 and 2024 as one of the top business journalists in the world by PR News. He was also named by RETHINK to its global list of Top Retail Experts 2024.
About Us
Canada’s Podcast is the number one podcast in Canada for entrepreneurs and business owners. Established in 2016, the podcast network has interviewed over 600 Canadian entrepreneurs from coast-to-coast.
With hosts in each province, entrepreneurs have a local and national format to tell their stories, talk about their journey and provide inspiration for anyone starting their entrepreneurial journey and well- established founders.
The commitment to a grass roots approach has built a loyal audience on all our social channels and YouTube – 500,000+ lifetime YouTube views, 200,000 + audio downloads, 35,000 + average monthly social impressions, 10,000 + engaged social followers and 35,000 newsletter subscribers. Canada’s Podcast is proud to provide a local, national and international presence for Canadian entrepreneurs to build their brand and tell their story.
