Canada’s trade gap grows as imports rise, exports edge down

Lloyd Doyle
July 8, 2018

Canada in May imported 2.9 percent more goods from countries other than the United States, its leading trade partner.

Analysts in a Reuters poll had predicted a shortfall of $2.05-billion. Exports came in flat in the month, dragged on by shipments of motor vehicles and parts and metal ores and non-metallic mineral products.

Exports fell 2.0 percent month-over-month in May, reversing a 2.9 percent increase a month ago. Were it not for price increases, the decline would have been sharper, with volumes down 1 per cent in May. After struggling through the middle part of past year, exports had seen a revival in recent months due to a run-up in oil prices and stronger demand for non-energy exports. "Indeed, the first five months of the year C$24.9 billion worth of passenger cars and light trucks were shipped from Canada to the world, 14.6% less than in the same period last year". Exports of forestry products and building and packaging materials also saw a marked rise. Imports edged down 0.1 percent from April, when it grew by 2.8 percent. Imports of aircraft and other transportation equipment as well as energy products contributed the most to the increase in May.

Pushed by a 17.7 percent rise in orders of aircraft and other transportation equipment - the fifth consecutive monthly rise for that category - Canadian imports rose 1.7 percent to Can$51.1 billion in May, Statistics Canada said.

OTTAWA-Canada's trade deficit widened in May as automotive exports fell and aircraft imports from the US rose sharply.

Other reports by Iphone Fresh

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