2025-12-11 17:21

Canada posts trade surplus of C$153 million in September This is the first ever trade surplus since January 2025 Canada's surplus with U.S. at its highest level since February Total exports in September grew by 6.3% to C$64.23 billion OTTAWA, Dec 11 (Reuters) - Canada posted a small monthly international trade surplus in September, reversing a trend of seven consecutive months of deficits, data showed on Thursday. It registered a marginal trade surplus of C$153 million ($110.92 million) in September, following a C$6.43 billion deficit in the prior month, Statistics Canada said. Sign up here. This was the first ever surplus that Canada has posted since President Donald Trump threatened and later imposed tariffs on critical sectors which choked significant exports to the U.S., Canada's biggest trading partner. The bulk of the surplus was driven by a 44% jump in Canada's trade surplus with the U.S., StatsCan's data showed. The September trade data, which was due in November, was delayed as information for Canadian exports to the U.S. was unavailable due to a 43-day government shutdown in the U.S. Analysts polled by Reuters had forecast the trade deficit at C$4.5 billion for September. Economists said the trade numbers show that Canada's international merchandise trade was finally starting to normalize. "Overall story is really positive," said Prince Owusu, Senior Economist with Export Development Canada. "It seems to suggest that the trade flow with the United States is beginning to stabilize," he said, adding that the trend of diversification from the U.S. that started is also continuing. Canada's total exports in September grew by 6.3% to C$64.23 billion, rebounding from a drop of 3.2% in August, and were driven by higher exports in nine out of 11 product sections. This was the largest percentage increase since February 2024. This was led by U.S. exports that grew by 4.6% and exports to countries other than the U.S. growing by 11%, StatsCan said. Exports of metal and non-metallic mineral products and aircraft and transportation equipment and parts led the gains with an over 20% rise in exports. In volume terms, total exports rose 4.1%, the statistics agency said. Total merchandise imports dropped by 4.1% in September to C$64.08 billion. SURPLUS WITH THE U.S. Exports to the U.S. grew to C$45.84 billion from C$43.83 billion in August, helped by outbound shipments of aircraft, light trucks and unwrought gold, StatsCan said. The U.S. accounted for over 71% of Canada's exports in September. Imports from the U.S. declined 1.7% in September, a third consecutive monthly decrease, taking Canada's trade surplus with the U.S. to its highest level since February. Higher shipments of unwrought gold, crude oil and aircraft led the jump in exports to countries other than the U.S. Imports from countries other than the U.S. dropped 7.3%. Canada's trade deficit with countries other than the United States has narrowed sharply, posting the lowest deficit since October 2024, Statistics Canada said. The Canadian dollar firmed in early trade and was trading up 0.2% to 1.3767 to the U.S. dollar, or 72.64 U.S. cents. Yields on the two-year government bonds were down 0.2 basis points to 2.524%. ($1 = 1.3794 Canadian dollars) https://www.reuters.com/world/americas/canadas-posts-trade-surplus-september-beating-expectations-deficit-2025-12-11/

2025-12-11 16:33

Regulatory reforms needed to address market concentration, institutional weaknesses, IDB report says Fragmentation hinders market connectivity, labor access, report says High logistics costs keep companies around the region small and insulated NEW YORK, Dec 11 (Reuters) - Latin America and the Caribbean could lift their per-capita output by 11% and cut inequality by 6% by making markets more competitive, according to a new Inter-American Development Bank report published on Thursday. The study frames weak competition as a central reason the region has failed to convert decades of macroeconomic progress into sustained productivity gains. Markets in Latin America are, on average, "about four times more concentrated than advanced economies," it said, with effects that spill directly into prices, wages and company growth. Sign up here. The IDB concluded that deeper competition would boost the region's productivity, expand formal employment and strengthen fiscal capacity. "If Latin America had the level of competition of advanced economies, GDP per capita would be ... about 11% higher, and inequality will also fall," it said, arguing that the shift is essential if the region is to raise living standards over the next decade. "The report demonstrates that markets are not merely a contextual element in development; they play an active role in driving it," IDB Group President Ilan Goldfajn said in a statement. "When competition works, the private sector can do what it does best - create jobs, boost innovation, and deliver better outcomes for workers and consumers." The region has made a lot of progress in the last 30 years, including conquering inflation, stabilizing financial systems and expanding education and safety nets, according to Matias Busso, a lead economist in the research department at the IDB and the editor of the report. "Despite all this progress, growth has remained low," Busso said, pointing to the importance of competition. "When firms face competitive pressure, they will reduce prices, they will increase the quantities they produce, they will pay their workers higher wages, and they will innovate more." Highlighting that point, the report shows that for similar production costs, consumers in Latin America and the Caribbean pay about 15% more than their advanced economy peers, while take-home salary is comparatively lower. FRAGMENTATION, REGULATION CONSTRAINING COMPANIES The report acknowledges that correcting market distortions is not a simple task. "Competition doesn't happen by accident," it said, adding that governments "can help create more competitive markets with better infrastructure, with smarter regulations and with stronger institutions." A major factor, they said, is fragmentation. Many cities and regions suffer from poor connectivity, high logistics costs and limited access to labor markets, which keep companies small and insulated. Regulation reinforces these constraints, according to the report. The IDB said that many rules act as high barriers to entry, discouraging entrepreneurs and encouraging firms to stay small to avoid compliance thresholds. Busso said this dynamic helps produce the region's "missing middle," a lack of midsized firms that, in other economies, pressure incumbents to cut prices and innovate. Institutional weaknesses further limit competition, with related agencies in the region typically having far smaller budgets and staff than their peers in advanced economies, and limited independence. Busso said agencies must be able to intervene "when regulations are being designed, not only afterward." https://www.reuters.com/markets/asia/competitive-markets-could-lift-latin-americas-output-reduce-inequality-idb-says-2025-12-11/

2025-12-11 14:23

BRASILIA, Dec 11 (Reuters) - Brazil's fiscal and monetary policies must converge as high interest rates have pushed up public debt, Finance Ministry Executive Secretary Dario Durigan said on Thursday. His remarks at an event hosted by the lower house came after the central bank held interest rates at a near two-decade high of 15% on Wednesday, without signaling when a cut might come. Sign up here. Durigan defended the need to accommodate the pace of growth in mandatory spending within the country's fiscal rules. https://www.reuters.com/world/americas/brazil-government-says-fiscal-monetary-policies-must-converge-2025-12-11/

2025-12-11 13:33

OTTAWA, Dec 11 (Reuters) - Canada posted a C$153 million ($111 million) trade surplus in September, as exports grew and imports fell, Statistics Canada said on Thursday. This was the first trade surplus in eight months. Due to the implementation of new software at the Canadian Border Services Agency, StatsCan said that this month's data includes a greater degree of estimation. Sign up here. Exports grew 6.3% on metal and non-metallic mineral products, as well as energy products. Imports fell by 4.1% on metal and non-metallic mineral products, as well as consumer goods. Following are the seasonally adjusted figures in billions of Canadian dollars: Merchandise trade Sep Aug (rev) change pct Aug (prev) Balance +0.153 -6.427 n/a -6.324 Exports 64.231 60.404 +6.3 60.584 Imports 64.078 66.831 -4.1 66.908 NOTE: Analysts surveyed by Reuters forecast a trade deficit of C$4.50 billion in August. ($1=$1.3795 Canadian) Keywords: CANADA ECONOMY/TRADE https://www.reuters.com/world/americas/canada-posts-c153-million-trade-surplus-september-2025-12-11/

2025-12-11 12:49

BUDAPEST, Dec 11 (Reuters) - Hungary signed a framework agreement with Azerbaijan for the purchase of up to 800 million cubic meters of natural gas over two years, Hungary's Foreign Minister Peter Szijjarto told a briefing on Thursday. The deal between Hungary's state-owned MVM and Azerbaijan's SOCAR is the third gas deal that Hungary signed since September that could help the country diversify from Russian gas. Sign up here. "This is a framework agreement that enables up to 800 million cubic metres of deliveries to be realised. Specifically how much of this will be fulfilled in the next two years will depend on the prevailing market conditions," Szijjarto said. In October, Hungarian natural gas wholesaler MVM CEEnergy agreed to buy 400 million cubic metres of gas a year from France's Engie , opens new tab between 2028 and 2038. Earlier, Hungary agreed with Shell to buy 200 mcm of natural gas a year from January 2026, equal to around 2.5% of its demand as the country consumes around 8 billion cubic metres of gas a year. Last week MVM CEO Karoly Matrai told Reuters that MVM group will be able to supply the country with enough gas even if imports from Russia are halted, although prices will likely rise, its chief executive told Reuters. Despite efforts to diversify, Hungary has maintained its reliance on Russian gas and oil even after the start of the war in Ukraine. Prime Minister Viktor Orban said this week that Hungary has imported 7.5 billion cubic meters of gas from Russia so far this year. At the briefing on Thursday, Szijjarto also said that Hungary's oil and gas company MOL (MOLB.BU) , opens new tab was close to "signing a deal on participation in a new big exploration and production project" in Azerbaijan. MOL did not immediately reply to questions from Reuters on the possible deal. https://www.reuters.com/business/energy/hungary-buy-more-azeri-gas-mol-close-upstream-deal-foreign-minister-says-2025-12-11/

2025-12-11 12:40

SANTIAGO, Dec 11 (Reuters) - Chile's mining investment is expected to reach $104.549 billion from this year through 2034, state-run agency Cochilco said on Thursday, up from last year's estimate of about $83 billion through 2033. The increase brings the spending forecast to its highest level since 2016, Cochilco said. It includes plans for a major expansion at BHP's (BHP.AX) , opens new tab Escondida, the world's biggest copper mine. Chile is the world's largest producer of copper and second-largest of lithium, a key ingredient of rechargeable batteries. Sign up here. https://www.reuters.com/world/americas/chile-raises-mining-investment-forecast-through-2034-105-billion-2025-12-11/