Surge in exports significantly narrows trade deficit from $3.4B to $376M
“As a result, Canada’s merchandise trade deficit with the world narrowed from $3.4 billion in May to $476 million in June,” Statistics Canada said.
With the lower loonie, exports to the United States led the way, rising 7.1 per cent to $34.2 billion in June. Exports to countries other than the United States increased 3.8 per cent to $10.4 billion. Statistics Canada said a $646 million increase in exports to the United Kingdom was partially offset by a $289 million decrease in exports to Switzerland.
Exports grew in 9 of 11 sections measured by Statistics Canada, led by consumer goods as well as metal and non-metallic mineral products. Exports, excluding energy products, were up 6.9 per cent.
More positive news for the Canadian economy, imports from the United States declined 0.9 per cent to $29.5 billion while imports from countries other than the United States inched up 0.1 per cent to $15.6 billion.
Canada’s trade surplus with the United States widened from $2.1 billion in May to $4.7 billion in June, while its trade deficit with other countries narrowed from $5.5 billion to $5.2 billion.
Statistics Canada also noted lower imports of aircraft and other transportation equipment and parts as well as energy products. The lower imports were partially offset by increased imports of electonic and electrical equipment, as well as metal and non-metallic mineral products, however.