Canadian trade deficit widens to $3.3 billion in September

Wednesday, 04 November 2020 21:52:47 (GMT+3)   |   San Diego
       

According to Statistics Canada, in September, Canada's merchandise exports rose 1.5 percent, led by higher exports of lumber and aircraft, while imports were also up 1.5 percent, mainly on higher crude oil imports. As a result, Canada's merchandise trade deficit with the world widened slightly from $3.2 billion in August to $3.3 billion in September.

Total exports rose 1.5 percent in September to $45.5 billion—this was $2.8 billion short of the levels posted in February, before the COVID-19 pandemic. In September, 8 of 11 product sections increased, and non-energy exports were up 2.2 percent. In real (or volume) terms, total exports increased 1.2 percent.

Imports of energy products rose 28.8 percent in September to $2.1 billion, which was still 24.4 percent below February levels. Imports of crude oil (+87.1 percent) were behind the increase this month, surpassing the $1 billion mark for the first time since March. September's increase was volume-driven, with Canadian refineries purchasing more crude oil from Louisiana. While the import value for crude oil was on average $1.6 billion per month in 2019, it dropped to $563 million between the months of April and August 2020.

After declining 8.1 percent in August, exports to countries other than the United States rose 10.9 percent to $12.3 billion, the strongest increase since June 2018. Exports to the United Kingdom (gold and aircraft), Norway (aircraft and nickel) and Germany (copper and various other products) contributed the most to the growth. With the September increase, exports to countries other than the United States surpassed February levels.

Imports from countries other than the United States rose 2.1 percent in September to $17.6 billion. This represents a fourth consecutive monthly increase. There were higher imports from Japan (gold and passenger cars and light trucks), as well as from Italy (various). Imports from countries other than the United States also surpassed February levels in September.

Canada's trade deficit with countries other than the United States narrowed from $6.1 billion in August to $5.3 billion in September.

Exports to the United States decreased 1.6 percent to $33.2 billion in September, while imports were up 1.2 percent to $31.2 billion. As a result, Canada's trade surplus with the United States narrowed from $2.9 billion in August to $2.0 billion in September. Compared with February, both exports (-8.0 percent) and imports (-4.3 percent) with the United States declined.


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