Canada's net trade appears to contribute to fourth-quarter GDP
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Alexandra Brown from Capital Economics stated that the growth in Canada’s import and export volumes in December confirms that net trade had a positive impact on fourth-quarter GDP. However, the volatility behind the data suggests that export demand remains very weak. On a volume basis, both exports and imports rose by 1.4% month-on-month, meaning that fourth-quarter exports grew at an annualized rate of over 8%, while imports increased by nearly 1%. Brown noted that fluctuating gold prices drove export growth, and another volatile category—aircraft—also provided support, with a surge in large business jet exports to the United States leading to a significant increase in aircraft exports. The economist pointed out that most other categories recorded month-on-month declines.
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