Canada's Trade Deficit Narrows in May


Canada's merchandise exports increased 1.2% in May while imports rose 1.1%. As a result, Canada's trade deficit with the world narrowed from $857 million in April to $814 million in May.

Exports increased to $36.9 billion as volumes rose 1.5% while prices decreased by 0.3%. The higher volumes were mainly led by the machinery and equipment as well as the automotive products sectors. The energy products sector was the main contributor to the decline in prices.

Imports increased to $37.8 billion, as all sectors except energy products recorded gains. Prices rose 2.1%, with the increase led by energy products and industrial goods and materials. Volumes decreased by 1.0%.

Canada's trade surplus with the United States narrowed from $4.0 billion in April to $3.7 billion in May. Exports to the United States edged up 0.1% to $27.1 billion. Imports increased 1.1% to $23.4 billion in May, a third straight monthly increase.

Exports to countries other than the United States rose 4.4% to $9.8 billion in May, on the strength of higher exports to the European Union. Imports increased 1.1% to $14.4 billion, as most of Canada's principal trading areas registered gains. As a result, Canada's trade deficit with countries other than the United States narrowed from $4.8 billion in April to $4.6 billion in May.


TradingEconomics.com, Statistics Canada
7/12/2011 1:45:53 PM