Canadian Account Deficit Narrows | US Economic Growth Decelerates in Q2
Published August 29, 2019
Canada’s current account deficit narrowed by $10.2 billion to $6.4 billion in the second quarter of this year, which is the lowest level since Canada returned to a deficit position at the end of 2008. The reduction mainly reflected a much lower deficit on goods.
The White House is not expected to make a deal in the short term with China, according to recent reports that indicate planned retaliations from President Trump are straining the relationship. Commerce Ministry spokesman, Gao Feng, stated that, “China has ample means for retaliation, but thinks the question that should be discussed now is about removing the new tariffs to prevent escalation.” Higher tariffs on Chinese exports to the US are due to come into force on September 1st.
US economic growth decelerated in the second quarter by more than initially reported, with stronger consumer spending offset by weaker readings across other categories. This suggests that President Donald Trump’s trade actions are weighing more heavily on the pace of expansion. Inflation-adjusted gross domestic product grew at a 2% annualized rate, according to Commerce Department data Thursday.