Canada's Trade Deficit Narrows in August


Canada's merchandise imports fell 3.1% and exports edged down 0.1% in August. As a result, Canada's trade deficit with the world narrowed from $2.5 billion in July to $1.3 billion in August.

Imports fell to $38.8 billion as declines occurred in every sector, except energy products. Volumes, which fell in every sector, were down 2.2% in August.

Exports amounted to $37.5 billion as a decrease in prices offset an increase in volumes. The largest decline occurred in exports of industrial goods and materials, while exports of energy products increased after six consecutive monthly declines.

Imports from the United States fell 4.3% to $24.2 billion, while exports rose 1.4% to $27.6 billion. Consequently, Canada's trade surplus with the United States increased from $2.0 billion in July to $3.5 billion in August.

Exports to countries other than the United States fell 3.9% to $9.8 billion, mainly the result of a 19.5% decline in exports to Japan. Imports from countries other than the United States declined 1.0% to $14.6 billion. Consequently, Canada's trade deficit with countries other than the United States increased from $4.5 billion in July to $4.8 billion in August.


By TradingEconomics.com, Statistics Canada
10/11/2012 1:47:08 PM