Canada Posts First Trade Surplus in 20 Months

Canada posted a trade surplus of CAD 0.526 billion in August of 2018 from a CAD 0.189 billion deficit in the previous month. Figures compare with market expectations of a CAD 0.5 billion deficit. Both imports and exports declined in August. Imports fell 2.5 percent, mainly on lower imports from non-US countries, while exports were down 1.1 percent, mostly on decreased exports of passenger cars and light trucks.

Exports decreased 1.1 percent month-over-month to CAD 50.5 billion in August after reaching a record high value of CAD 51.11 billion in July. Sales fell for motor vehicles and parts (down 6.2 percent to CAD 7.4 billion), mainly due to passenger cars and light trucks (-8.9 percent); metal and non-metallic mineral products (down 6.2 percent to CAD 5.4 billion), namely unwrought precious metals and precious metal alloys (-14.3 percent) and unwrought gold (-3.8 percent), mainly due to lower sales to the United Kingdom. On the other hand, exports rose 20.1 percent for metal ores and non-metallic minerals, due to copper ores and concentrates (+CAD 187 million), mostly on higher shipments to Japan, South Korea and India.

Exports to the United States went down 1.2 percent to CAD 37.7 billion and exports to other than the US declined 0.9 percent to CAD 12.8 billion, particularly to the United Kingdom. These decreases were partly offset by higher exports to India and South Korea.

Imports declined 2.5 percent from the previous month to CAD 50.0 billion in August. Purchases of aircraft and other transportation equipment and parts fell 27.8 percent to CAD 1.3 billion, as there were no imports of commercial airliners and aircraft engines and parts decreased 16.9 percent. Also, imports of consumer goods decreased 3.7% to CAD 10.5 billion, namely pharmaceutical and medicinal products (-5.0 percent), miscellaneous goods and supplies (-3.5 percent) and furniture and fixtures (-9.5 percent); and motor vehicles and parts (down 3.8 percent to CAD 9.0 billion), particularly motor vehicle engines and parts (-9.6 percent), as atypical planned shutdowns in the automotive manufacturing sector in August contributed to lower imports of auto parts.

Imports from the United States decreased 1.3 percent to CAD 32.4 billion and to other countries than the US fell 4.5 percent to CAD 17.6 billion, namely China, Brazil, Belgium, Algeria and the Netherlands.

Canada Posts First Trade Surplus in 20 Months

Statistics Canada | Agna Gabriel |
10/5/2018 1:55:35 PM