The recent move in the currency has also been welcomed by Japan's exporters, which have suffered from strength in the yen which they had blamed
for weak exports.
Not exact matches
Fabricated metals is another of the industries that the Bank of Canada thought would lead the
export recovery as shipments traditionally got a boost
for a
weak currency.
But
for Poloz, that would be attacking a symptom of the post-crisis malaise, rather than the cause, which in his view is
weak exports and business spending.
One of the most frustrating issues
for Poloz is the country's
weak export growth, especially outside of the energy sector.
U.S. coal
exports to Asia have also risen in recent months as ailing U.S. mining companies search
for alternatives to the
weak domestic market.
Canada's
weak export picture had been a constant source of concern for Stephen Poloz in recent years (reminder: before he was the Governor, Poloz was the head of Export Development Ca
export picture had been a constant source of concern
for Stephen Poloz in recent years (reminder: before he was the Governor, Poloz was the head of
Export Development Ca
Export Development Canada).
That would be bad news
for the torrid earnings growth being enjoyed by US companies, since the large multinational corporations with heavy weighting in stock indexes have had
exports boosted by a
weak currency.
The currency has been under pressure following comments from the U.S. administration last week that a
weak dollar could be beneficial
for exports, casting doubts over a commitment towards a strong dollar.
The Business Outlook Survey says executives are feeling better because of stronger demand
for exports and a
weaker currency that is boosting their profit margins.
Last year, and
for the first time since 2001, the contribution of net
exports to overall growth turned positive, but the performance of non-energy
exports and investment remains
weak.
However, domestic demand in Europe and Japan — important
export markets
for the United States — remains very
weak.
The three main downside risks to inflation in Canada relate to the European crisis,
weaker demand
for Canadian
exports and the possibility that growth in Canadian household spending could be
weaker.
Perhaps the biggest one is that the market
for the bulk of Canada's
exports, amounting to about 25 per cent of Canadian GDP, namely the United States, is currently very
weak.
Nevertheless I do worry that the fall in
exports from a strong dollar is a bit stronger than the rise in
exports from a
weak dollar: I suspect because there is a hysteresis effect: Once a factory is shut down, it stays shut down — and if firms don't continuously invest to stay at the cutting edge of technology, it can be hard
for a high - wage advanced economy to stay globally competitive.
Even after a drop in commodities this month, seven of eight tracked by the Standard & Poor's GSCI Agriculture Index are higher than a year earlier as adverse weather damages crops, rising demand erodes inventories and a
weak dollar boosts demand
for U.S.
exports.
If these inflows however are counterbalanced by rising private inflows from Chinese businesses and wealthy individuals taking money out of China, either because of
weaker domestic growth prospects of because of rising nervousness and uncertainty, asset prices might not fall as much as we would have expected, but Australia will be caught in a vice a little like that of,
for example, Spain, in which
export weakness can not be partially counterbalanced by a
weaker currency.
A
weak Yen and a strong RMB pose a problem
for China because Japan is its largest trading partner in the region at 7 % of total
exports.
But commodity -
exporting countries, especially those with
weaker macroeconomic fundamentals, could be hit, contributing to negative market sentiment
for countries like Brazil and Russia.
2015.10.28
Exporting represents golden growth opportunity
for small - and medium - sized businesses in Canada: RBC Economics A
weaker Canadian dollar, lower energy prices and stronger growth in key
export markets are creating opportunities
for small businesses to reap the benefits of
exporting...
-LRB-...) Russia's economic growth has been slowing amid dwindling investment, hefty capital outflows, and
weak demand and low prices
for its commodities
exports.
A
weaker yuan makes Chinese
exports cheaper
for buyers, and thus boosts trade.
For example, a
weaker dollar would stimulate
exports.
Analysts speculated that Fortescue's
weak export rate in October and November may be linked to the Chinese shutdowns and the middle kingdom's growing preference
for iron ore with higher grades than Fortescue typically produces.
Manufacturing production rose at the slowest pace
for a year, as rates of expansion in new business and new
export orders eased to the
weakest since April 2015 and January 2015 respectively.
- Japan
exports rose 2.1 % on year in March,
weaker than the MNI median forecast
for a 5.3 % rise.
With a
weak Canadian dollar relative to the U.S., low energy prices, and a growing U.S. economy, conditions are favourable
for SMEs to increase their
export presence.
While
exports have been
weak for some time, there have been tentative signs of a recovery over recent months.
The Australian Industry Group (AIG) survey of manufacturing also reported improved conditions, particularly
for firms exposed to the housing sector, while in contrast,
export - oriented manufacturing firms reported relatively
weak conditions.
A
weaker renminbi can help make Chinese
exports cheaper
for foreigners and imports dearer
for locals, creating the incentive
for a «net inflow» of money.
The combined effects of falling commodity prices,
weak global demand
for exports and soft internal demand have led to year - over-year (YOY) declines in the gross domestic products (GDPs) of the largest Asian economies.
Global impact: The proposed new rules take no account of the global impact of foods
exported from the EU, the need to ensure that they are in the right language, or how they will help corporations lobby
for weak global trading standards and agreements (such as TTIP 14 or Codex 15).
Not only is a
weaker pound likely to reduce consumer spending power, but cheaper
exports won't be able to compensate
for it if new tariffs hinder our international supply chains.
«This is a failure to enforce even the
weak regulations they have,» says Democratic Rep. Gene Green of Houston, who introduced a House resolution calling
for a ban on the
export of e-waste.
Finally, not only is the
weak dollar good
for exports, but
for tourism as well.
Weaker demand
for exports will raise new questions about the Chinese government's ability to meet its growth target of about 6.5 per cent.
The report does contain some good news
for Ontario, which will see an
export - led revival to 2.3 per cent growth this year — the second - highest rate in the country — after advancing by a
weak 1.3 per cent the previous two years.
While a
weaker dollar may boost U.S.
exports and the profits of U.S. companies with overseas operations,
weaker foreign demand
for U.S. Treasury bonds would push up long - term interest rates, raising mortgage payments
for U.S. homeowners and borrowing costs
for an indebted government.
Exports disappointed even after accounting
for weaker business and residential investment in the United States, adjustments in the resource sector, and cutbacks in auto production.
That's because low prices
for oil should continue to offset government stimulus spending as well as increased
exports due to the
weak Canadian dollar.
Though October - December sales were
weak, Japanese solar PV cell
exports rose 1.2 %, to 1,462 MW
for 2011 as a whole, Reuters reported.
The reasons
for this approach can be plentiful: states might want to
export their norms, stronger parties might want to impose pre-existing templates on
weaker parties, states might want to replace existing international economic agreements, or it might be more cost effective to conclude one set of negotiations, covering a vast array of fields, instead of having a sector - based approach.
The outlook
for manufacturing employment is not as positive as the rest of the economy, affected by
weak export markets, the continuing downturns in steel, oil and gas — and by skills shortages.