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Canada’s trade deficit shrinks to 6-month low as exports rise

Shipping containers are seen at the Fairview Cove Container Terminal in in Halifax in August, 2017. Statistics Canada says the country's merchandise trade deficit shrank to $966 million in April, the smallest deficit since October last year. Andrew Vaughan/CP

Rising exports and falling imports helped shrink Canada‘s goods trade deficit in April to $966 million, the smallest in six months, Statistics Canada said on Thursday.

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Analysts in a Reuters poll had forecast a shortfall of $2.8 billion. Statscan also revised March’s deficit sharply down to $2.34 billion from an initial $3.21 billion.

Exports rose by 1.3 per cent as shipments of metal and non-metallic mineral products jumped by 15 per cent on higher sales of gold to Britain and Hong Kong.

READ MORE: Canadian economy up a measly 0.4% in Q1, but March data show promise

Exports of canola fell by $47 million, or 14.7 per cent, as shipments to China stopped amid a diplomatic dispute. Exports of wheat though jumped $136 million, or 21.7 per cent.

Total imports fell by 1.4 per cent as deliveries of U.S. airliners plunged by 82.7 per cent in April after a 50.7 per cent drop in March.

Canada sent 74.5 per cent of all its goods exports to the United States in April. Exports to the United States rose by 0.9 per cent while imports grew by 1.9 per cent and as a result, Canada‘s bilateral trade surplus fell to $4.20 billion from $4.49 billion in March.

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