Canada Trade Surplus Narrows Amid Decline in Exports
Canada's merchandise trade surplus narrowed in July as exports fell for the first time in six months, according to Statistics Canada. The country posted a $769-million trade surplus in July, down from a surplus of $4.2-billion in June.
The decline in exports was widespread, with seven out of 11 product sections experiencing a decrease. Metal and non-metallic mineral products fell by 8.5%, while energy products dropped 4.4% due to lower crude oil prices and volumes.
On the other hand, imports rose 2.2% to $75.4-billion in July, driven by increases in six out of 11 categories, including a 11.4-per-cent rise in motor vehicle imports.
The trade deficit with countries other than the US was $5.1-billion in July, compared to $6.1-billion in June. However, exports to non-US countries rose 7.4% to a record high of $25.6-billion.
BMO senior economist Shelly Kaushik noted that the trade figures are largely a 'rearview mirror' look at the past, as new tariffs will likely continue to impact Canada's economy in the coming months.