Not exact matches
Statistics Canada reported December 6 that imports slumped
in October, while
exports remained
weak.
Even the somewhat
weak loonie hasn't spurred much growth
in Canada's
export sector.
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.
With the domestic economy too
weak to maintain China's high growth rates, and with
exports to the West hurting, the Communist Party
in Beijing and its regional offshoots have come to rely heavily on cheap
exports and debt - fuelled investment to sustain China's fragile fortunes.
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).
«The disappointing performance
in export activity suggests that the loss of
export competitiveness from the strong dollar and the
weak global backdrop are becoming a net drag on U.S. economic activity,» said Millan Mulraine, deputy chief economist at TD Securities
in New York.
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.
A
weaker dollar makes
exports more profitable, which helps companies doing business overseas — most notably the multinational conglomerates with big weightings
in stock indexes.
Poloz insisted the trend he anticipated
in 2013 — a steady increase
in non-commodity
exports buttressed by stronger demand
in the U.S. and a
weaker dollar — was now entrenched.
The
export bounce is, at face value, a sign that China's modest economic revival is intact and suggestive of global demand being on the mend, but imports were surprisingly
weak, falling 15.2 percent from a year earlier to 13 - month lows and highlighting vulnerability lurking
in the domestic economy.
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.
While a
weaker yuan can hurt U.S. multinational companies»
exports, growth
in China has been largely infrastructure driven, which draws
in commodities but not consumer goods, said McCaughan, whose firm manages nearly $ 343 billion
in assets.
In July, when the Bank of Canada cut its policy to its current setting of 0.5 %, policy makers expressed concern over weak non-energy exports and a deep contraction in business investment brought on by the collapse of commodity price
In July, when the Bank of Canada cut its policy to its current setting of 0.5 %, policy makers expressed concern over
weak non-energy
exports and a deep contraction
in business investment brought on by the collapse of commodity price
in business investment brought on by the collapse of commodity prices.
A
weak GBP could make the auto maker cost - competitive and efficient
in most of the markets it
exports to, including China, which is critical both
in terms of profitability and volumes, he said.
China's surprise decision to revalue the yuan as it tried to contain the stock market turmoil caused the currency to drop the most
in 21 years last month, triggering exchange - rate declines elsewhere
in the emerging world on concern that a
weaker yuan will hurt countries
exporting to China.
Meanwhile,
exports and investment are still
weaker than one would expect at this stage of the business cycle, even though growth
in the global economy has also surprised on the upside.
However, domestic demand
in Europe and Japan — important
export markets for the United States — remains very
weak.
Because Canada's relatively
weak export performance has been a central aspect of our economic situation, the Bank of Canada has examined it
in increasing detail.
The real issue that was not addressed
in the budget is the absence of any economic engine to spur a recovery
in growth
in 2014 and beyond, The household sector is deep
in debt; housing construction has stalled; companies lack confidence and are not investing; the federal and provincial governments are
in serious restraint mode; and the
export sector is
weak and deteriorating.
The
weaker dollar supports U.S.
export growth, which
in turn has helped bolster corporate earnings.
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.
Beijing is more likely to believe that the economic slowdown was caused by been weakness
in domestic real estate and infrastructure construction, and not because
exports are
weak, and the latest trade dataconfirms the relatively strong
export performance.
Plus, the effect of a
weaker sterling has been beneficial
in a few ways, with consumer price inflation increasing, manufacturing and
export levels also on the rise.
In general, a
weaker U.S. dollar tends to help emerging markets, particularly oil -
exporting countries.
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.
Also, the US economy was quite
weak in the first half of the year
in dimensions that are important to Canadian
export demand.
The downward revision reflects further downgrades of business investment plans
in the energy sector, as well as
weaker - than - expected
exports of non-energy commodities and non-commodities.
As the Canadian economy contends with softer than expected
exports,
weak business investment and effects of the Alberta wildfires, real GDP growth
in 2016 is forecast to be 1.4 per cent...
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...
2016.06.10 Canadian economic activity erratic through 2016: RBC Economics As the Canadian economy contends with softer than expected
exports,
weak business investment and effects of the Alberta wildfires, real GDP growth
in 2016 is forecast to be 1.4 per cent...
With crude - oil
exports rising year - over-year, the value of the
exports did not rise proportionally, with Canada's crude - oil
export bill declining about 11 percent to $ 50 billion
in 2016 compared to $ 55.8 billion the previous year, as lower crude prices and a
weaker dollar cramped the
export value of crude.
Economic growth
in the UK was broadly supported by consumer confidence and
exports reinforced by a
weaker pound sterling, with the easing of credit conditions leading to credit growth, loose fiscal policy and global economic growth.
It was the
weakest in nine years, as tight monetary conditions have crimped industrial activity and
export growth slips amid waning demand from U.S. and European markets.
The surplus
in goods trade with the U.S. was the smallest since the third quarter of 2016, as
weaker prices decreased the value of oil
exports.
Domestic demand growth was noticeably
weaker in the quarter, following very strong growth through 1999, while the contribution to growth from net
exports picked up.
In addition to a
weaker euro, which helps fuel its
export - oriented economy, the cost of financing its sovereign debt relative to its existing debt continues to fall while the smaller countries struggle with rising financing costs.
In contrast, net
exports have been a significant drag on growth, largely because of
weak merchandise
exports.
The
weak export performance seen since 2000 has reflected subdued performance
in all major categories of
exports.
Growth
in Australia's
export volumes has remained
weak over the past year or so, despite strong growth
in global demand and world commodity prices, with total
exports virtually unchanged from four years ago (Graph 31).
Of these
weaker data points to which Poloz makes note, the most concerning are the drop
in non-energy
exports, anemic wage growth and a disappointing jobs market.
The Greenback is recovering the bulk of last week's losses, with the Euro
weaker despite German IP and
Exports better than expected, and Euro Unemployment coming
in at 7 year lows — Sterling falls to October Lows on Article 50 headers — Turkey's Lira fresh record low on Moody's, Peso eyeballing lows into Auto Show Headers.
Even Germany's economy grew only 0.3 % last quarter, or 1.3 % annualized, as
weak demand
in Europe and patchy global growth hit its
exports.
«Overall growth
in China is evolving broadly as envisaged, but with a faster - than - expected slowdown
in imports and
exports,
in part reflecting
weaker investment and manufacturing activity,» the IMF said.
While a
weaker Yuan helps
exporting sectors, it causes problems
in China's domestic economy.
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.
Despite a strong dollar and
weak exports, manufacturing activity will benefit from improved domestic demand, and further gains
in construction activity will aid the recovery of states such as California and Arizona.