Canada's Trade Deficit Widens in July

Canada's trade deficit rose to 2.7 billion dollars (2.6 billion US) -- more than three times the level expected by analysts of 800 million dollars, following an upwardly revised deficit of 1.8 billion dollars in June.

The figures reflect soft trade volumes from a sluggish global economy: exports to the United States, which accounts for three-fourths of Canadian exports, fell 2.2 percent. This meant the overall trade surplus with the US fell by half to 1.2 billion dollars.

Overall exports were down 0.7 percent at 32.8 billion dollars while imports increased two percent to 35.5 billion.

Canada increased its imports of petroleum and automobiles, boosting the level of overall imports to the highest level since November 2008, the agency said.

Exports of machinery and equipment declined 1.9 percent, aircraft exports dropped 9.6 percent, and those of consumer goods slumped 7.3 percent. Canada also saw drops in exports of forestry products, offset in part by growth in industrial goods and metals.

Energy products imports rose 11.9 percent and auto sector imports increased 2.9 percent.

Canada, AFP
9/14/2010 3:09:02 PM