Rate cut may spur 're-fi boom'

High energy prices are no longer enough to mask the deterioration of Canada's international trade picture.

Canada's trade surplus for 2007 dwindled to its lowest level in eight years, as sales in two pillars of Canada's economy – automotive products and forestry – plummeted.

Economists now expect Canada to register a current account deficit some time this year, a stark reversal in Canada's international standing after a decade of boasting about its surpluses.

The reasons for the reversal of fortunes are the U.S. slowdown and its gradual spread to the rest of the world economy, analysts say.

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