Canadian Outlook—International Trade: COVID-19 Trampling Trade
The Conference Board of Canada, 15 pages,
August 10, 2020
This quarterly economic forecast presents the medium-term outlook for the Canadian economy. This release focuses on international trade. For an overview of all major components of the economy, download the Canadian Outlook Summary.
- A global recession, depressed oil prices, curtailed production, disrupted global supply chains, and continued uncertainty surrounding the COVID-19 pandemic are weighing heavily on Canadian trade in 2020.
- Merchandise exports are being battered by the sharp downturn in U.S. economic demand and severe disruptions to global supply chains.
- Weak domestic demand, pulled down by declines in consumer and business investment spending, will weigh heavily on merchandise import activity.
- The outlook for trade in services is bleak, as stringent global measures put in place to contain the COVID-19 pandemic have muted activity.
- The current account deficit will remain elevated throughout the forecast period.