July 13, 2018

Canada's trade deficit rises to $2.8 billion in May

Statistics Canada announced that the country's merchandise trade deficit totalled $2.8 billion in May, widening from a $1.9 billion deficit in April.

The federal agency reports that total exports edged down 0.1% to $48.3 billion. Exports of motor vehicles and parts fell 3.6% to $7.3 billion. Exports of metal ores and non-metallic minerals also fell significantly in May, down 14.6% to $1.3 billion, the lowest level since September 2016. These declines were largely offset by higher exports of aircraft and other transportation equipment and parts, which were up 7.8% to $2.1 billion in May. Higher exports of forestry products and building and packaging materials also helped moderate the overall decrease in May, rising 3.1% to $4.1 billion, the highest level since January 2006.

Imports rose 1.7% in May to $51.1 billion. Imports of aircraft and other transportation equipment and parts rose 17.7% to $2.4 billion. Imports of refined petroleum energy products, up 13.9% to $1.6 billion, also contributed to the overall increase

On a per country basis, imports from the United States rose 1.0% in May to $32.6 billion, while exports to the United States fell 0.2% to $35.9 billion. As a result, Canada's trade surplus with the United States narrowed from $3.7 billion in April to $3.3 billion in May.

Imports from countries other than the United States rose 2.9% in May to $18.5 billion. Higher imports from China (aircraft and other communications equipment), Belgium (pharmaceutical and medicinal products) and Germany were offset by lower imports from Mexico, among others. Exports to countries other than the United States edged up 0.2% in May to $12.5 billion. There were notable gains in exports to Saudi Arabia (other transportation equipment) and Hong Kong (unwrought gold). These increases were partially offset by lower exports to France and the Netherlands. Consequently, Canada's trade deficit with countries other than the United States widened from $5.6 billion in April to $6.1 billion in May.