Canadian Trade Deficit Widened In February
The National Bank of Canada | Apr 05, 2013 06:21AM ET
Canada’s merchandise trade balance worsened unexpectedly to a deficit of C$1 bn in February (top chart). That was weaker than consensus which was looking for a surplus of C$100 million. In February, the deterioration in the merchandise trade balance was due to a drop in exports (-0.6%), and a rise in imports (+0.1%). There were export gains in autos (+5.6%), aircraft equipment (+2.3%), metal ores (+7.3%), and forestry (+2.5%) but those were more than offset by declines elsewhere including the 5.2% drop in sales of electronic equipment. Imports were supported by healthy gains in chemicals, industrial machinery and autos. The energy trade surplus rose to C$5.4 bn as imports fell more than exports. The goods trade surplus with the U.S. fell to C$3.4 bn, a 4-month low. The trade deficit with the European Union reached a new record of C$1.6 bn (middle chart), as exports fell again while imports rose. In real terms, Canada’s exports fell 1.6% while imports dropped 1%.
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