Canada Trade Deficit Widens in November


Canada's trade deficit increased to CAD 2.5 billion in November of 2017, widening from CAD 1.6 billion in the previous month and above market expectations of a CAD 1.2 billion deficit. Imports went up 5.8 percent month-over-month and exports rose 3.7 percent, both due largely to increased activity in the automotive industry. Sales to the United States increased by 5.4 percent, while imports grew by 6.5 percent. As a result, the trade surplus with the United States, which accounted for 76.2 percent of Canadian goods exported in November, declined to CAD 3.34 billion from CAD 3.47 billion in October.

Imports advanced 5.8 percent month-over-month to CAD 48.7 billion in November of 2017 from CAD 46.0 billion in October. It is the strongest increase since July of 2009, as there were increases in 10 of 11 sections. Volumes rose 5.0 percent and prices 0.7 percent. The imports increase was mainly due to purchases of electronic and electrical equipment and parts, motor vehicles and parts, as well as aircraft and other transportation equipment and parts.

Year over year, total imports were up 8.1 percent. Imports of electronic and electrical equipment and parts rose 10.9 percent to CAD 5.8 billion in November, driven by rises in all commodity groups. In addition, communications and audio and video equipment, mainly cell phones, posted a 21.6 percent gain to a record high CAD 2.1 billion. The introduction of new cell phone models, which is atypical for this time of year, was behind the growth observed in November. Also, purchases of motor vehicles and parts rose 5.4 percent to CAD 9.2 billion and motor vehicle engines and motor vehicle parts were up 15.7 percent, after two consecutive monthly drops. Activity in the automotive industry rebounded following the planned shutdowns and work stoppages that occurred in September and October. Imports of aircraft and other transportation equipment and parts also rose in November, up 18.7% to CAD 2.2 billion. Higher imports of ships from South Korea and China were responsible for the increase.

Exports increased 3.7 percent month-over-month to CAD 46.2 billion, the most in a year, due to increases in 8 of 11 sections. Higher sales of motor vehicles and parts and consumer goods contributed the most to the growth. Prices were up 3.2 percent and volumes 0.6 percent. In contrast, excluding exports of motor vehicles and parts, sales volumes were down 1.4 percent. The export value of motor vehicles and parts increased 14.6 percent to CAD 7.7 billion and passenger cars and light trucks rebounded 21.2 percent to CAD 5.3 billion. As with imports of motor vehicle engines and motor vehicle parts, increased activity in the automotive industry led to a rise in exports. For the section as a whole, volumes rose 13.4 percent. Also, sales of consumer goods contributed to the growth in November, rising 7.4 percent to CAD 6.0 billion and pharmaceutical and medicinal products posted the strongest increase (+23.7 percent), due mainly to increased exports to Italy.

Canada Trade Deficit Widens in November


Statistics Canada | Stefanie Moya | stefanie.moya@tradingeconomics.com
1/5/2018 2:46:12 PM