Canada’s trade deficit narrowed to $983 million in February

Statistics Canada says exports rose 0.5 percent while imports were down 0.8 percent.

Statistics Canada announced that the country’s merchandise trade deficit with the world narrowed from $1.7 billion in January to $983 million in February.

The Federal agency says merchandise exports rose 0.5% in February, because of higher exports of aircraft, while imports were down 0.8%, in part due to a decrease in crude oil imports.

Exports totaled $48.3 billion. Exports of aircraft and other transportation equipment and parts rose 18.5%. Moderating the overall export increase, energy products fell 7.0%.

Imports fell to $49.3 billion. Imports of energy products fell 16.0% following a high observed in January. Higher imports of aircraft and other transportation equipment and parts (+27.3%) moderated the decline in total imports.

On a global perspective, Canada’s trade deficit with countries other than the United States narrowed from $5.0 billion in January to $4.7 billion in February. This is the smallest deficit observed since November 2018. Imports from those countries were down 5.6%. Imports from China (-6.8%), South Korea (-26.8%) and Peru (-32.4%) posted the largest declines. After falling 3.1% in January, exports to countries other than the United States decreased 5.3% in February. These exports totalled $11.8 billion, the lowest level since February 2019. The main contributors to the decrease were exports to the United Kingdom (-21.4%), Hong Kong (-70.8%) and China (-6.4%).

Exports to the United States were up 2.5% in February, in part because of aircraft and passenger cars. Imports from the United States rose 1.7%, mainly on higher aircraft imports.

As a result, Canada’s trade surplus with the United States widened from $3.4 billion in January to $3.7 billion in February.