Canada Trade Surplus Narrows in June


Canada’s trade surplus decreased to CAD 0.14 billion in June 2019 from a downwardly revised CAD 0.56 billion in the previous month and against market expectations of a CAD 0.3 billion gap. It was the third trade surplus since December 2016, as exports were down 5.1 percent, while imports fell at a softer 4.3 percent, both due in part to significant decreases in crude oil, as well as aircraft and other transportation equipment and parts.

Exports were down 5.1 percent month-over-month to CAD 50.3 billion in June 2019 from a downwardly revised CAD 53 billion in the previous month and against market consensus of CAD 51.5 billion. Exports of energy products fell 7.4 percent to CAD 10 billion, as shipments of crude oil dropped 8.6 percent, marking the first monthly decrease in 2019. Also, exports of aircraft and other transportation equipment and parts decreased 25.1 percent to CAD 2.2 billion, dragged down by lower sales of aircraft (-40.8 percent), amid lower shipments of commercial aircraft to the United States. 

Exports to the United States were down 3.9 to CAD 37.63 billion while those to countries other than the US fell 8.4 percent to CAD 12.7 billion, in particular Hong Kong (gold) and Saudi Arabia (other transportation equipment). Meanwhile, exports rose to the UK (gold). 

Imports dropped 4.3 percent month-over-month to CAD 50.2 billion in June 2019, from an upwardly revised CAD 52.43 billion in the previous month and against market expectations of CAD 51.8 billion. Purchases of aircraft and other transportation equipment and parts slumped 25.8 percent to CAD 1.7 billion while imports of energy products went down 14.8 percent to CAD 2.7 billion, contributing to the overall decline in June. 

Imports from the US declined 0.5 percent to CAD 31.97 billion, while those from countries other than the US decreased 5.2 percent to CAD 18.2 billion, of which Germany (cars), Saudi Arabia (crude oil) and Mexico (various products) contributed the most to the overall decrease. 

The country's trade surplus with the US narrowed to CAD 5.7 billion in May from CAD 5.9 billion, in the prior month.


Canada Trade Surplus Narrows in June


Statistics Canada | Rafael Gonzalez | rafael.gonzalez@tradingeconomics.com
8/2/2019 1:19:59 PM