- Brown Brothers Harriman & Co
Canada's building permits declined in March due to fewer planned projects in western Alberta, particularly within the commercial sector. According to Statistics Canada, the value of building permits issued by municipalities in March plunged 7% to $6.9 billion. The drop followed a revised 15.3% surge in February. The data was worse than the 4.4% decrease predicted by economists. The value of permits issued in Alberta, dramatically hit by a plunge in crude prices, dived by 41.3%. This followed a 43.3% surge in February on the back of a big commercial project in the city of Edmonton.
Canada's exports fell sharply in March and the country's trade deficit with the rest of the world widened to a record level, fuelling doubts on the strength of the recovery in the resource-reliant economy. Canada posted a record trade deficit of C$3.41 billion in March, Statistics Canada reported, whereas expectations were for a smaller C$1.4 billion trade deficit. Exports dropped 4.8% following a dramatic 6.6% decline in the preceding month. In the meantime, imports fell 2.4% to C$44.4 billion in March, with volumes edging down 0.3% and prices declining 2.1%. The Bank of Canada projects growth of 2.8% during the first quarter of the year, but warns that the Q1 boost is likely temporary, with much softer gains estimated for the second quarter.
© Dukascopy Bank SA