Canada’s trade gap narrows in July as exports jump

Canada’s trade deficit in July unexpectedly shrank to $2.49-billion from a record $3.97-billion in June as exports jumped by 3.4 per cent and imports stagnated, Statistics Canada data indicated on Friday.

The deficit – the 23rd in a row – was smaller than the $3.25-billion shortfall forecast by analysts in a Reuters poll. Statscan revised June’s deficit upwards from an initial $3.63-billion.

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Non-energy products drove the growth in exports, with healthy gains seen in the motor vehicles and parts, metal and non-metallic mineral products and transportation equipment sectors.

Imports slipped by 0.1 per cent on lower demand for consumer goods, vehicles and parts and electronic and electrical equipment and parts.

Exports to the United States, which took 76.2 per cent of all Canadian exports in July, rose by 3.3 per cent while imports fell by 0.5 per cent. As a result, Canada’s trade surplus with the United States rose to $2.62-billion from $1.43-billion in June.