ZCZC
BCN-09
CANADA-TRADE
Canada trade deficit narrows as dependence on US wanes
OTTAWA, March 28, 2019 (BSS/AFP) – Canada’s trade deficit narrowed to
Can$4.2 billion (US$3.1 billion) in January as commerce with countries other
than the United States ramped up, the government statistical agency said
Wednesday.
The figure, following a record trade deficit of Can$4.8 billion (revised
upward) in the previous month, was higher than economists had expected.
“Overall, the data out today continue to provide a mixed picture of the
Canadian economy,” said CIBC Capital Markets analyst Royce Mendes.
According to Statistics Canada, exports rose 2.9 percent to Can$47.6
billion in January.
Higher exports of refined gold to Britain and gold transfers to Hong Kong
within the banking sector, as well as increased transportation equipment
sales to Saudi Arabia, were partially offset by lower exports of soybeans to
China, it said.
After five consecutive monthly decreases, energy exports rose in January
to Can$7.1 billion. That was driven by a 36.5 percent increase in crude oil
exports on the strength of higher prices.
The rebound in export oil prices, however, remained 40.1 percent below a
peak in July.
Imports, meanwhile, rose 1.5 percent to Can$51.8 billion, led by a record
Can$2.7 billion or 52.6 percent increase in aircraft and parts purchases.
That was partially offset by lower energy imports.
Canada’s trade surplus with the United States — its neighbor and largest
trading partner — narrowed for the sixth consecutive month to Can$1.6
billion in January.
After five consecutive monthly declines, exports to the US rose 1.1
percent on the crude oil strength while imports rose 1.8 percent.
Meanwhile, exports to other countries rose 7.9 percent. And imports rose
1.1 percent to Can$19.4 billion, surpassing the previous month’s record.
Contributing to that increase were Belgium (pharmaceutical products),
Britain (aircraft and aircraft parts), Saudi Arabia (crude oil), China
(various products) and Mexico (various products).
These gains were partially offset by lower imports from Brazil (bauxite)
and South Korea (iron and steel products).
BSS/AFP/HR/0930