Canada posts bigger-than-expected June trade deficit of C$3.73 billion
CANADA’S trade deficit increased to C$3.73 billion (S$3.73 billion) in June from May, the largest in nearly three years, as exports dropped 2.2 per cent, outpacing a 0.5 per cent decline in imports, Statistics Canada (StatsCan) data showed on Tuesday (Aug 8).
Analysts in a Reuters poll had forecast a trade deficit of C$2.90 billion. StatsCan upwardly revised May’s deficit to C$2.68 billion from C$3.44 billion reported initially.
Canada’s trade deficit with countries other than the United States, its biggest trading partner, increased to an all-time high in June as month-over-month exports declined 5.5 per cent, while imports were down marginally.
There were broad declines in exports in June, with metal and non-metallic mineral products being the largest drag.
Total exports fell 1.1 per cent by volume, marking the 11th monthly drop in export prices in the past 12 months.
Total imports declined 0.5 per cent, largely due to lower imports of energy products as well as pharmaceuticals. Imports of unwrought gold jumped, and nearly offset declines in other product categories. By volume, imports were up 0.9 per cent.
Statscan also warned that impact from a 13-day strike by dock works in western Canada is likely to seen in July data to be released next month. REUTERS
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