More bad news for Canada’s economy in the wake of the Energy East Pipeline cancellation.
For the third straight month, Canada’s exports fell. With imports flat, Canada’s trade deficit has now risen to $3.41 billion. This is the fifth largest trade deficit on record, and is yet more evidence that Canada’s so-called economic growth is mostly illusory.
Exports fell by 1%, as consumer goods, chemical, plastic, rubber, metal ore, and non-metallic minerals all fell. Exports in August (the last month where figures are available), came in at $43.63 billion, while imports were $47.04 billion. Our exports to the United States fell by a full 1.8%, while our imports from the U.S. increased by 0.9%.
As noted in a BNN report, the Bank of Canada is said to be worried by Canada’s weak non-energy exports. Most disturbingly, at the same time as non-energy exports struggle, our energy industry is taking blow after blow as massive projects are cancelled – most recently the Energy East pipeline.
Clearly, the high-tax, high regulation approach of the Trudeau government is failing miserably, and this failure, combined with Canada’s dangerously high levels of household debt, puts Canada at serious risk of a recession, or even an economic crisis.