Canada Posts Smallest Trade Deficit in 19 Months

The Canadian trade deficit narrowed to CAD 0.11 billion in July of 2018 from an upwardly revised CAD 0.74 billion in the previous month and well below market expectations of a CAD 1.13 billion gap. It was the smallest trade deficit since the most recent surplus in December of 2016, as exports rose 0.8 percent to an all-time high, mainly on higher crude oil prices and imports went down 0.4 percent, due to fewer aircraft imports.

Exports from Canada rose 0.8 percent month-over-month to an all-time high of CAD 51.3 billion in July of 2018 despite declines in 6 of 11 product sections. Sales of energy products increased 5 percent, the highest since September of 2014, boosted by crude oil exports (+7 percent). In addition, there was a 3.4 percent gain in exports of motor vehicles and parts, namely passenger cars and light trucks (+3.8 percent). On the other hand, sales of aircraft and other transportation equipment and parts declined. Exports excluding energy products edged down 0.2 percent in July. 

Exports to the United States went up 3.3 percent to CAD 38.4 billion and exports to other than the US declined 6 percent to CAD 12.8 billion, particularly to Japan, Germany, Mexico, India and Saudi Arabia. These decreases were partially offset by higher exports to the United Kingdom. 

Imports went down 0.4 percent from the previous month to CAD 51.4 billion. Purchases of aircraft and other transportation equipment and parts fell 15.6 percent to CAD 1.8 billion in July, following a 14.1 percent decrease in June, as aircraft decreased 44.8 percent, mainly due to lower imports of airliners from the United States. Also, imports of metal ores and non-metallic minerals declined 13.9 percent, dragged down by other metal ores and concentrates (-16.7 percent). On the other hand, imports advanced for energy products (+8.8 percent), mainly due to refined petroleum products (+11.3 percent) and crude oil (+7.4 percent). 

Imports from the United States edged down 0.1 percent to CAD 33.1 billion and to other countries than the US fell 1 percent, namely from Belgium, Japan and Saudi Arabia.

Canada Posts Smallest Trade Deficit in 19 Months

Statistics Canada | Agna Gabriel |
9/5/2018 4:57:08 PM