Canada posted a trade deficit in May as imports rose and exports fell
The country’s merchandise imports increased 2.1% in May, while exports fell 1.6%
Statistics Canada announced that the country’s merchandise imports increased 2.1% in May, while exports fell 1.6%. As a result, Canada’s merchandise trade balance moved from a surplus of $462 million in April to a deficit of $1.4 billion in May.
Total imports increased to $50.9 billion in May, up in 7 of the 11 product sections. Imports of metal and non-metallic mineral products rose 17.7% to reach a record high of $5.3 billion. Imports of consumer goods rose 4.8% in May, led by higher imports of miscellaneous goods and supplies.
Total exports decreased to $49.5 billion in May, declining 8 of the 11 product sections. Consumer goods (-8.8%) contributed the most to the decline in total exports in May. Exports of motor vehicles and parts decreased 5.8%, the seventh decline in the last eight months. Partially offsetting these declines, exports of forestry products and building and packaging materials rose 8.9% to a record $5.2 billion.
The Federal agency notes that Canada’s trade deficit with countries other than the United States widened from $6.1 billion in April to a record $7.5 billion in May. Imports from countries other than the United States, which rose 5.3% in May, drove the growth in total imports. Several countries were behind this increase, including Japan, Italy, Mexico, and China. Exports to non-US countries were down 3.0%, mainly on lower exports to the United Kingdom.
Imports from the United States edged up 0.1% in May, while exports to the United States fell 1.1%. As a result, Canada’s trade surplus with the United States narrowed from $6.6 billion in April to $6.1 billion in May.