August 12, 2009

Canada’s trade deficit falls by half

Canada's trade deficit with the rest of the world was cut by half, or $55 million, in June as exports rose and imports declined, Statistics Canada reported.

Exports increased 2.3 percent to just under $29.3 billion in June, ending three consecutive monthly declines, while imports fell 1.3 percent to just over $29.3 billion.

That lowered the country's global trade deficit, excluding the United States, from $1.1 billion in May, the report said.

Exports to the United States climbed 5.1 percent, largely the result of higher exports of crude petroleum, while imports fell 1.8 percent, StatsCan said. This widened Canada's trade surplus with the United States to $3.1 billion from $1.7 billion in May.

Energy products led the gain in exports, up 14 percent to $6.4 percent in June, while industrial goods and materials increased 6.1 percent to $6.3 billion.

There were declines of imports in three of seven sectors, led by machinery and equipment, which fell 6 percent to $8.5 billion. Imports of industrial goods and materials decreased 4.3 percent to $5.8 billion and imports of consumer goods were down 1.6 percent to $4.7 billion, the report said.