Dwindling trade surplus

Also, Canada’s buoyant trade surplus from recent quarters has been dwindling recently.

“The trade surplus has taken a severe hit over the past year,” notes John Shin, economist at Lehman Brothers. “Trade is a crucial component for the growth outlook in Canada.”

Shin forecasts a 2.6-percent GDP reading for Canada in 2007 and points to data showing a monthly trade surplus of C$3.8 billion from October 2006, down from a C$7.7 billion surplus as recently as December 2005.