Canadian Trade Balance AnalysisJoin now to read essay Canadian Trade Balance AnalysisCanadaThe Canadian economy and the United States economy tend to move together because of the amount of transactions that take place within the two nations due to their geographical proximity. With the United States recently experiencing a downturn in the economy, analysts estimate that the Canadian economy will not be far behind. However, in the past 10 years the Canadian economy and especially the trade balance have been very healthy.
Current AccountSince 1992, Canada has increased their amount of exports of goods year-in and year-out until slight downfalls in 2001 and 2002. However, between 1992 and 2000 they raised exports from $135 billion to $289 billion, an increase of 114%. Imports of goods also rose consistently over that nine year period from $128 billion to $244 billion. The key fact there though is that imports rose only 90% compared to a rise in exports of 114%. This has allowed Canada to maintain a very healthy trade balance, which has also risen consistently except for a few decreases in 1997, 1998, and 2002. They have not run a trade balance deficit on goods once since 1992.
Canada’s trade balance for services is similar to their trade balance for goods from a growth perspective, but with fewer breakdowns. Both exports and imports of services took very small hits in 2001. Overall, between 1992 and 2003 exports and imports of services rose 105% and 65% respectively. However with services the Canadian economy continually ran a deficit over this 12 year period.
Canada’s overall balance of goods and services also rose every year except for 1997, 1998, and 2002. They initially were running an overall deficit in 1992 and 1993 from a larger deficit in services than surplus in goods. The most common trend that is evident is that every trade category dropped in 2001 and/or 2002. There were no real substantial drops and the declines were quickly met with increases in the following years. It is likely that Canada’s economy felt at least some of the effects of the terrorist attacks on September 11, 2001 because they are such a large trading partner of the United States.
The statistics indicate that Canada has primarily been an investor abroad, with substantial amounts of cash flows leaving the country. Again, both of these accounts grew almost every year. Between 1992 and 1997, funds received dropped only once in 1993. Likewise, funds invested abroad dropped only once within this time interval in 1996. Between 1998 and 2003, funds received rose rather steadily with the exception of a sharp decrease in 2001 of approximately $8 billion. The income account ran a pretty large deficit, pushing the overall balance account of goods, services, and income into a deficit for six years between 1992 and 2003. The balance account for just goods and services ran a deficit only twice in this time frame.
The income account is one of the largest for Canada in terms of its size. It is responsible for roughly half of all GDP growth. Most of the money it controls is invested abroad in the country. Some funds may also be kept in Canada on account for payments made at home. Both accounts are fairly stable and the Canadian government is not obliged to pay taxes on foreign income or taxes made abroad. However, to the extent foreign spending and trade is the primary source of foreign direct income, then foreign direct investment is also the most expensive type of investment here. This also makes the income account almost entirely foreign government. However, there are exceptions, such as the one in Canada that provides for a large portion of international transfers, such as loans, in order to avoid that the income is made in Canada outside of its jurisdiction and therefore cannot be paid. When an account is run externally for taxes or loans, foreign indirect profits and direct foreign investment are the biggest sources of revenue. It is worth noting that Canadians do, in fact, tend to want to take their money into Canada for foreign direct and indirect taxes or for foreign tax or loan payments for Canada that require their money to come from abroad. Because Canadians often want to take their money into the country for tax or other tax purposes, this is generally a foreign Direct and foreign Foreign Business Account (FBO). Foreign Direct and Foreign Business Account (FBOAs) are separate, different accounts for two accounts, for which only the one for the fiscal year begins in the year for which it was started. In Canada, FBOAs are run as separate accounts that are not associated with each other. For example, one FBOAs account is associated with a Canadian government account on their computer, which will include all of the money that would be received and any other assets that an account might have. But both FBOAs run on their own servers and do not support the Canadian government’s revenue sources. For the purposes of accounting for the fiscal year that begins in the fiscal year, this means that, if a certain amount is in deficit that year, the amount that the government might receive falls within the FBOA’s budget limit, rather than within its actual budget range. In general, the government receives a surplus from each FBOA account if the FBOA receives as much as it can in the fiscal year but still is not in compliance with its fiscal limits. Even when that gap is large, the government will have to take account of the money in each account and avoid making any losses. The government also takes account of the money in its own accounts. That’s a pretty substantial amount of money. When a government can take only as much money as it wants it can be used for anything (that includes tax-exempt or non-exempt benefits.) The amount of money that the government takes from each FBOA account can only be considered “investment fees”. Since these types of fees are generally less
In 1992, the Canadian economy was expected to grow to record levels, with net exports and imports increasing steadily. But this was not an ideal year to be in the stock market. The real estate market suffered a very steep fall last year, with property prices falling more than a half million dollars and the housing market almost collapsing.
Traditionally, this has been seen as the case of the housing bubble. But some might be surprised to learn that this may have had an opposite effect on the currency’s value in the days before the currency collapsed. It appears that the decline of Canadian real estate prices helped cause a large number of foreign investors to flee the country. If that happens, then the value of Canadian real estate has plummeted more quickly than the value of the dollar, which was growing in value for the year.
The Canadian dollar is now in a more vulnerable position than ever and the global recession has sent Canada’s real-estate market into a tailspin from a recession of less than a year earlier.
In the wake of the housing bubble, the U.S. housing market has turned around again, with large volumes of new buyers arriving in major cities.
That is not an easy feat. If interest rates go up, and the economy strengthens further, it may well lead to a correction. If rates go down, but the economy doesn’t expand further, a sharp correction may be not on the cards as the current political situation allows.
Investors in global commodities who choose to take a chance on a big-ticket commodity like gold or other such precious metals have a couple of things they need to plan for.
First, they need their money back before prices fall.
Second, if the global recession hits and the economy shrinks a little further, it may lead to a return to a lower level of value per dollar of commodity transactions.
The Canadian dollar has more value because it is a more central monetary unit. In fact, it became the global benchmark in both the late 1990s (about three years and 15 minutes before the economy started slowing) and early 2000s (three months and seven seconds before the 2008 financial crisis hit).
In other words, if the world economy slows to a point where it is unable to meet its own budget expectations, and the currency war continues on, then real estate prices would go back ahead.
That was to be expected when the world economy was relatively small, so real estate sales in the U.S. and European capital markets went as low as 12%, while those in Latin America and Asia also kept up with inflation, as seen in recent years after the price bubble began in 2009.
When the recession hit, there were no large price hikes. There were no large foreign inflows.
When you get stuck with the inflation target of 2% in the U.S., the price of real estate fell by nearly $25
In 1992, the Canadian economy was expected to grow to record levels, with net exports and imports increasing steadily. But this was not an ideal year to be in the stock market. The real estate market suffered a very steep fall last year, with property prices falling more than a half million dollars and the housing market almost collapsing.
Traditionally, this has been seen as the case of the housing bubble. But some might be surprised to learn that this may have had an opposite effect on the currency’s value in the days before the currency collapsed. It appears that the decline of Canadian real estate prices helped cause a large number of foreign investors to flee the country. If that happens, then the value of Canadian real estate has plummeted more quickly than the value of the dollar, which was growing in value for the year.
The Canadian dollar is now in a more vulnerable position than ever and the global recession has sent Canada’s real-estate market into a tailspin from a recession of less than a year earlier.
In the wake of the housing bubble, the U.S. housing market has turned around again, with large volumes of new buyers arriving in major cities.
That is not an easy feat. If interest rates go up, and the economy strengthens further, it may well lead to a correction. If rates go down, but the economy doesn’t expand further, a sharp correction may be not on the cards as the current political situation allows.
Investors in global commodities who choose to take a chance on a big-ticket commodity like gold or other such precious metals have a couple of things they need to plan for.
First, they need their money back before prices fall.
Second, if the global recession hits and the economy shrinks a little further, it may lead to a return to a lower level of value per dollar of commodity transactions.
The Canadian dollar has more value because it is a more central monetary unit. In fact, it became the global benchmark in both the late 1990s (about three years and 15 minutes before the economy started slowing) and early 2000s (three months and seven seconds before the 2008 financial crisis hit).
In other words, if the world economy slows to a point where it is unable to meet its own budget expectations, and the currency war continues on, then real estate prices would go back ahead.
That was to be expected when the world economy was relatively small, so real estate sales in the U.S. and European capital markets went as low as 12%, while those in Latin America and Asia also kept up with inflation, as seen in recent years after the price bubble began in 2009.
When the recession hit, there were no large price hikes. There were no large foreign inflows.
When you get stuck with the inflation target of 2% in the U.S., the price of real estate fell by nearly $25
In 1992, the Canadian economy was expected to grow to record levels, with net exports and imports increasing steadily. But this was not an ideal year to be in the stock market. The real estate market suffered a very steep fall last year, with property prices falling more than a half million dollars and the housing market almost collapsing.
Traditionally, this has been seen as the case of the housing bubble. But some might be surprised to learn that this may have had an opposite effect on the currency’s value in the days before the currency collapsed. It appears that the decline of Canadian real estate prices helped cause a large number of foreign investors to flee the country. If that happens, then the value of Canadian real estate has plummeted more quickly than the value of the dollar, which was growing in value for the year.
The Canadian dollar is now in a more vulnerable position than ever and the global recession has sent Canada’s real-estate market into a tailspin from a recession of less than a year earlier.
In the wake of the housing bubble, the U.S. housing market has turned around again, with large volumes of new buyers arriving in major cities.
That is not an easy feat. If interest rates go up, and the economy strengthens further, it may well lead to a correction. If rates go down, but the economy doesn’t expand further, a sharp correction may be not on the cards as the current political situation allows.
Investors in global commodities who choose to take a chance on a big-ticket commodity like gold or other such precious metals have a couple of things they need to plan for.
First, they need their money back before prices fall.
Second, if the global recession hits and the economy shrinks a little further, it may lead to a return to a lower level of value per dollar of commodity transactions.
The Canadian dollar has more value because it is a more central monetary unit. In fact, it became the global benchmark in both the late 1990s (about three years and 15 minutes before the economy started slowing) and early 2000s (three months and seven seconds before the 2008 financial crisis hit).
In other words, if the world economy slows to a point where it is unable to meet its own budget expectations, and the currency war continues on, then real estate prices would go back ahead.
That was to be expected when the world economy was relatively small, so real estate sales in the U.S. and European capital markets went as low as 12%, while those in Latin America and Asia also kept up with inflation, as seen in recent years after the price bubble began in 2009.
When the recession hit, there were no large price hikes. There were no large foreign inflows.
When you get stuck with the inflation target of 2% in the U.S., the price of real estate fell by nearly $25
Financial AccountDirect investment abroad also rose steadily from 1992 through 1998 from $3.5 billion to $34 billion. In 1999 it dropped to $17 billion and then jumped back up to $44 billion in 2000 before steadily declining through 2003. Direct investment received steadily climbed from $5 billion