Canada Trade Balance Swings to Deficit in August

Canadian balance of trade registered a CAD 610 million deficit in August of 2014 from a revised CAD 2.2 billion surplus in July, as exports decreased 2.5 percent while imports increased 3.9 percent to the highest value on record.

Exports fell to CAD 44.2 billion, led by motor vehicles and parts. Overall, volumes were down 1.8 percent and prices 0.7 percent.

Exports of motor vehicles and parts decreased 11.2 percent to CAD 6.1 billion in August, mainly due to a 13.1 percent fall in sales of passenger cars and light trucks. Shipments of motor vehicle engines and parts also declined by 8.6 percent. Exports of energy products dropped 5.8 percent to CAD 10.5 billion, hurt by a 7.1 percent fall in crude oil and crude bitumen. 

In contrast, exports of aircraft and other transportation equipment and parts increased to CAD 2.1 billion (26.8 percent), driven by higher exports of aircraft (+45.4 percent).

Imports rose to a record high CAD 44.8 billion, mainly due to metal and non-metallic mineral products as well as energy products. Import volumes increased 2.4 percent and prices were up 1.5 percent.

Imports from the United States were up 1.4 percent to CAD 29.7 billion. Exports to the United States declined 2.5 percent to CAD 33.3 billion on lower exports of motor vehicles and parts as well as energy products. Canada's trade surplus with the United States narrowed from CAD 4.8 billion in July to CAD 3.5 billion in August.

Canada Trade Balance Swings to Deficit in August

Statistics Canada | Ricardo Martins I
11/4/2014 1:37:43 PM