Canadian Trade Gap Narrows to 4-Month Low

Canada's merchandise trade deficit decreased to CAD 1.99 billion in November of 2015 from a downwardly revised CAD 2.49 billion gap in October and beating market expectations. Exports rose for the first time in four months by 0.4 percent boosted by higher sales of motor vehicles and parts, while imports shrank 0.7 percent mainly due to largest declines in electronic and electrical equipment and parts as well as energy products.

Total exports rose 0.4 percent to CAD 43.25 billion from CAD 43.09 billion in October, following three consecutive declines. Exports of motor vehicles and parts rose 5.9 percent, as sales of passenger cars and light trucks were up 7.7 percent. Also, exports of metal ores and non-metallic minerals increased 20.4 percent and those of forestry products and building and packaging materials were up 5.5 percent. By contrast, exports of energy products fell 6.6 percent to its lowest export value since May 2009, as exports of refined petroleum energy products (-30.8 percent) and natural gas (-17.8 percent) decreased the most. Exports of consumer goods declined 4.5 percent, mainly due to a fall in exports of pharmaceutical and medicinal products (-20.7 percent) and of other food products (-10.2 percent).

Total imports declined 0.7 percent to CAD 45.24 billion from CAD 45.58 billion in the previous month. Imports of electronic and electrical equipment and parts decreased 2.9 percent, due to lower purchases of communications and audio and video equipment (-9.1 percent). Imports of energy products fell 6.4 percent to its lowest import value since August 2004, as purchases of crude oil and crude bitumen were down for the fifth consecutive month by 9.1 percent. Also, imports of consumer goods declined 1 percent, led by pharmaceutical and medicinal products (-2.3 percent), alcoholic beverages (-8.1 percent) and clothing, footwear and accessories (-1.4 percent). These declines were moderated by a 2.5 percent increase in industrial machinery, equipment and parts.

Year-on-year, exports were down 1.6 percent while imports rose 2.8 percent.

Canadian Trade Gap Narrows to 4-Month Low

Statistics Canada | Joana Ferreira |
1/6/2016 2:10:03 PM