The roller-coaster ride continues:
The slow growth in 2007Q4 was largely blamed on a slowdown in net exports.
The current account surplus with the rest of the world (on a seasonally adjusted basis) increased sharply to $5.6 billion in the first quarter of 2008, led by higher prices for several exported commodities combined with a lower travel deficit. The deficits on commercial services and investment income were largely unchanged.
The slow growth in 2007Q4 was largely blamed on a slowdown in net exports.
Exports recorded a significant 2.2% decline in the fourth quarter, in the wake of a rising Canadian dollar and extended holiday shutdowns in several motor vehicle manufacturing facilities. Meanwhile, strong growth in final domestic demand and an accumulation of wholesale and retail inventories drove imports up 2.6%. The drop in exports was the first decline in six quarters, as Canada's international trade balance continued to deteriorate in the fourth quarter.Tomorrow we'll find out what the implications of this rebound are for 2008Q1 GDP.
How much of that trade surplus as actually US greenbacks...otherwise known as fake money??
Posted by: em butler | May 30, 2008 at 02:58 PM