Canadian Manufacturing

Statistics Canada reports trade deficit narrowed in February to $983M

Economists on average had expected a deficit of $1.87 billion

April 2, 2020  The Canadian Press

OTTAWA — Statistics Canada reports the country’s merchandise trade deficit narrowed to $983 million in February compared with $1.7 billion in January.

The change came as Canada’s exports rose because of higher exports of aircraft, while imports fell in part to lower crude oil imports.

Economists on average had expected a deficit of $1.87 billion for February, according to financial markets data firm Refinitiv.

Exports rose 0.5% to $48.3 billion in February as eight of the 11 sectors moved higher, while in volume terms, exports increased 2.7%.

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Exports of aircraft and other transportation equipment and parts rose 18.5%, boosted by aircraft which rose 46.8 % to hit their highest level in five years due to an increase in private jet exports. Excluding aircraft, total exports fell 0.3%.

Imports fell 0.8% to $49.3 billion, the lowest level in the past two years as seven of the 11 sectors tracked moved lower, while imports in volume terms fell 1.2%.

Imports of energy products fell 16.0%, with lower crude oil shipments from the U.S. the largest contributor to the decline.