Canada posts surprise trade deficit as exports fall

Canada posted a surprise trade deficit of $638-million in April, driving home the central bank’s concerns over exports.

Canadian exports tumbled by 1.8 per cent, Statistics Canada said Wednesday, while imports rose 1.4 per cent, leading to the shortfall that compared to a March surprlus of $766-million.

Economists had expected to see a small April surplus, rather than the hefty deficit reported by the federal agency...

Export volumes declined by 0.8 per cent, while prices slipped 1 per cent, for a level of $42.8-billion. The drop was led by energy and metal exports, while gains were led by forestry products after the end of a Vancouver port strike.

Imports, in turn, now stand at a record high of $43.5-billion, with volumes climbing 1.9 per cent in April and prices actually slipping by 0.4 per cent.

Consumer goods led the import drive.

Economists noted that the trade picture isn’t as bad as it might otherwise appear, given the impact of energy exports...

Canada’s trade surplus with the United States, its biggest trading partner, inched down to $4.3-billion April, from $4.4-billion, as exports to the U.S. slipped 0.2 per cent and American imports rose 0.3 per cent.

Exports to other countries, however, took a big hit, falling 7 per cent. Canadian goods headed to the European Union, in particular, took it on the chin, tumbling 22.8 per cent.

Imports from countries other than the United States rose 3.5 per cent.

This has been excerpted from the 4 June 2014 article by The Globe and Mail, and is available in its entirety at
http://www.theglobeandmail.com/report-on-business/economy/canada-posts-surprise-trade-deficit-as-exports-fall/article18982179/ (subscription may be required)