Canada Trade Gap Larger than Expected

The Canadian trade deficit widened to CAD 2.77 billion in May of 2018 from CAD 1.86 billion in April and above market expectations of a CAD 2.05 billion. Imports rose 1.7 percent, mainly due to higher purchases of aircraft, while exports edged down 0.1 percent.

Exports from Canada edged down 0.1 percent to CAD 48.3 billion. Shipments of motor vehicles and parts fell 3.6 percent to CAD 7.3 billion in May, due to passenger cars and light trucks (-4.9 percent). Additionally, exports of metal ores and non-metallic minerals (-14.6 percent) drop to its lowest since September of 2016 of CAD 1.3 billion. On the other hand, sales increased for aircraft and other transportation equipment and parts (7.8 percent), mainly due to shipments of other transportation equipment to Saudi Arabia; and forestry products and building and packaging materials (3.1 percent), boosted by higher exports to the United States of lumber, sawmill products and prefabricated finished carpentry (9.8 percent).

Exports to the United States went down 0.2 percent to CAD 35.9 billion and exports to other than the US increased 0.2 percent, particularly to Saudi Arabia and Hong Kong. Meanwhile, shipments decreased to France and Netherlands.

Imports rose 1.7 percent from the previous month to CAD 51.1 billion. Purchases of aircraft and other transportation equipment increased 17.7 percent for the fifth consecutive month to CAD 2.4 billion. Also, imports for refined petroleum energy products advanced 13.9 percent to CAD 1.6 billion, due to a temporarily shut down of the Canadian refineries. On the other hand, arrivals decreased for ships, locomotives, railway rolling stock and rapid transit equipment (-76.6%). Year over year, total imports were up 3.5 percent.

Imports from the United States went up 1 percent in May to CAD 32.6 billion and to other countries than the US rose 2 percent, namely from China, Belgium and Germany; while those from Mexico decreased.

Canada Trade Gap Larger than Expected

Statistics Canada | Agna Gabriel |
7/6/2018 1:43:55 PM