According to Statistics Canada, Canada's exports rose 1.8 percent in August, mainly due to an increase in exports of energy products and aircraft. Imports were up 1.0 percent, mostly on higher imports of gold and crude oil. As a result, Canada's merchandise trade deficit narrowed from $1.4 billion in July to $955 million in August.
Following two consecutive monthly declines, total exports increased 1.8 percent to reach $50.6 billion in August. Gains were observed in 8 of 11 product sections and non-energy exports were up 1.4 percent. Year-to-date total exports in 2019 were up 2.4 percent compared with the same period in 2018. Despite the August increase in nominal terms, exports in real (or volume) terms edged down 0.2 percent.
Total imports increased 1.0 percent to $51.5 billion in August, with gains in 7 of 11 product sections. Total imports in the first eight months of the year were up 2.0 percent compared with the same period last year. In real (or volume) terms, imports rose 1.2 percent in August.
Exports to the United States rose 3.1 percent in August, while imports were up 1.8 percent. As a result, Canada's trade surplus with the United States widened from $4.4 billion in July to $4.9 billion in August.
Exports to countries other than the United States fell 1.9 percent in August, the third consecutive monthly decline. Lower exports to Hong Kong (gold) and Italy (crude oil) were partially offset by higher exports to China (iron ores and potash) and the United Kingdom (gold).
Imports from countries other than the United States were down 0.5 percent. There were lower imports from Mexico (light-duty trucks), Norway (ships and motor gasoline) and Switzerland (pharmaceutical products) in August. As a result, Canada's trade deficit with countries other than the United States widened from $5.7 billion in July to $5.9 billion in August.