Higher crude oil exports reduced Canada’s trade deficit

Statistics Canada says the country’s trade deficit dropped from $1.2 billion in November to $370 million in December.

Statistics Canada announced that the country’s merchandise exports rose 1.9% in December, mostly on higher crude oil exports, while imports edged up 0.2%, narrowing the merchandise trade deficit from $1.2 billion in November to $370 million in December.

The Federal agency says exports increased to $49.3 billion. Exports of energy products (+9.5%) posted the largest monthly gain in December, led by higher crude oil exports (+18.0%). The overall export increase was attenuated by a decline in exports of metal and non-metallic mineral products (-10.5%).

Total imports edged up to $49.7 billion. Imports of consumer goods (+4.0%) posted the largest increase. Imports of aircraft and other transportation equipment and parts (+19.9%) were also up in December. A decline in imports of metal ores and non-metallic minerals (-20.6%) tempered the overall import increase.

On a global perspective, Canada’s trade deficit with countries other than the United States widened from $5.3 billion in November to $5.6 billion in December. Imports from those countries rose 1.0%, with imports from Belgium (other transportation equipment) and China (various products) posting the most significant increases. Exports to countries other than the United States declined 0.9% in December. Exports to the United Kingdom posted the largest decline due to lower exports of gold bars. However, this decrease was partly offset by higher exports to China, mainly of gold and potash.

Exports to the United States rose 2.9% in December, mainly due to crude oil exports. Imports from the United States were down 0.2%, a fourth consecutive monthly decline. As a result, Canada’s trade surplus with the United States widened from $4.1 billion in November to $5.2 billion in December.