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Trade

Trade: Buy and sell goods and services.

Stretch Goal Reports

Glossary Words from the following Reports: Export, Import

Report: Value of Exports


Report: Firms Participating in Foreign Export Trade


Summary Report

Importance

Problem

Cause

In the Numbers

Figure 1 shows the growth of New Brunswick’s annual trade deficits over time. It also illustrates the shifting sources of the deficit. Through 2007, negative interprovincial trade balances made up the bulk of the total deficit, but since 2007 interprovincial deficits have shrunk while international deficits have increased dramatically. In order to attain balanced trade, New Brunswick will need to make larger strides in international markets.

Figure 1: New Brunswick Balance of Trade (x1,000,000, Current Prices)

Figure 2 shows imports and exports for the province which have increased and decreased simultaneously tending to always move in the same direction. However, despite following a similar pattern year over year, the gap between them has grown. Annual trade deficits are shown on the right axis.

Figure 2: New Brunswick Imports and Exports

This situation can be linked to the lack of progress in the number of Firms Participating in Foreign Trade which has not increased significantly in recent years as shown in Figure 3. New Brunswick will need to grow this number in order to reach balanced trade.

Figure 3: Numbers of Exporting Firms

To understand the strain that increased trade deficits might have on the economy it is useful to look at the trade deficits as a percentage of GDP. This is shown in Figure 3. In 2001 this hit a low of 6% but has now hovered around 17% for the last several years.

Figure 4: Trade Deficit as a Percentage of GDP

Summary

The New Brunswick economy is finding itself financing an increasingly burdensome trade deficit. This has come about through a massively increased international trade deficit. To sustain strong growth New Brunswick businesses will have to shrink this deficit. The settling of the trade deficit at around 17% of GDP since 2008 is an important area to improve in the New Brunswick economy.


Appendix

Appendix A: Balance of Trade

Source:  Statistics Canada. Table 36-10-0222-01. Gross domestic product, expenditure-based, provincial and territorial, annual (x 1,000,000).

Appendix B: Trade Deficit as a Percentage of GDP

Source: Statistics Canada. Table 36-10-0222-01. Gross domestic product, expenditure-based, provincial and territorial, annual (x 1,000,000).