Canadian trade deficit narrows to $2.4 billion in August

Tuesday, 06 October 2020 20:14:27 (GMT+3)   |   San Diego
       

According to Statistics Canada, after two months of strong growth, Canadian merchandise exports and imports stabilized in August. Imports fell 1.2 percent, while exports were down 1.0 percent. As a result, Canada's merchandise trade deficit with the world narrowed slightly, from $2.5 billion in July to $2.4 billion in August.

After three consecutive monthly increases, imports from the United States fell 1.6 percent, to $30.4 billion, in August, a 6.7 percent decrease compared with February.

Exports to the United States were up 1.0 percent, to $33.8 billion, in August. This was a fourth consecutive monthly gain, and was led in part by higher lumber exports. Exports to the United States were 6.6 percent below the level observed in February. As a result, Canada's trade surplus with the United States widened from $2.5 billion in July to $3.3 billion in August, the highest surplus since February.

After rising 9.6 percent in June and 5.1 percent in July, imports from countries other than the United States (-0.4 percent) stabilized in August. Lower imports from Ireland (aircraft) and Mexico (passenger cars and light trucks) were partially offset by higher imports from Vietnam (cellphones) and China (various products). In August, the level of imports from countries other than the United States was 2.3 percent lower than the level observed in February.

Exports to countries other than the United States decreased 6.8 percent, to $11.2 billion, the lowest level observed since November 2017. Exports to Saudi Arabia (other transportation equipment), the United Kingdom (refined gold) and Italy (pharmaceutical products and wheat) contributed the most to the decline. In August, the level of exports to countries other than the United States was 8.3 percent lower than in February.

Canada's trade deficit with countries other than the United States widened from $5.0 billion in July to $5.8 billion in August.


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