Canada’s merchandise trade deficit withworld narrowed from $2.7b in May to $626m in June
Ottawa – Canada’s merchandise trade deficit with the world narrowed from $2.7 billion in May to $626 million in June, the smallest deficit since January 2017. Total exports increased 4.1%, mainly on higher exports of energy products and aircraft. Total imports edged down 0.2%.
In real (or in volume) terms, exports rose 2.1% and imports were down 1.3%.
Exports reach a record high
Exports rose 4.1% to $50.7 billion in June, the first time they have surpassed the $50 billion mark. Widespread increases throughout the product sections were led by energy products, and aircraft and other transportation equipment and parts. Excluding energy products, exports were up 3.4%. Year over year, total exports rose 9.2%.
Exports of energy products increased 7.1% to $9.9 billion, the highest level since October 2014. Crude oil exports were primarily responsible for the gain, up 6.6% to $7.2 billion on the strength of prices. Exports of refined petroleum energy products (+19.2%) also contributed to the growth, owing to higher exports of heavy fuel oils and diesel fuel.
Exports of aircraft and other transportation equipment and parts rose sharply in June, up 18.9% to a record $2.5 billion. Exports of aircraft were up 44.5% to $984 million, mostly on higher shipments of business jets to both the United States and non-US countries.
Significant export increases were also observed in other sections in June, including in the metal ores and non-metallic minerals (+22.9%), motor vehicles and parts (+3.7%) and industrial machinery, equipment and parts (+6.1%) sections.