Canadian trade deficit narrowed to $4.2 billion in January

Statistics Canada says exports rose 2.9% while imports were up 1.5%.

Statistics Canada announced that the country’s merchandise trade deficit with the world narrowed from $4.8 billion in December to $4.2 billion in January.

The Federal agency says total exports rose 2.9% to $47.6 billion, the first increase since July 2018. Exports of energy products rose 14.0% to $7.1 billion. Metal and non-metallic mineral products rose 11.9% to $5.6 billion. Partially offsetting these increases were lower exports of farm, fishing and intermediate food products, down 8.1% to $3.1 billion.

Total imports rose 1.5% to a record $51.8 billion in January. Imports of aircraft and other transportation equipment and parts led the increase in January, rising 52.6% to a record $2.7 billion. The overall increase in January was partially offset by lower imports of energy products, which fell 12.1% to $2.8 billion, mainly on lower imports of refined petroleum products.

On a per country perspective, Canada’s trade deficit with countries other than the United States narrowed from $6.6 billion in December to $5.8 billion in January. Exports to those countries rose 7.9% to $13.6 billion, mainly on higher exports to the United Kingdom (gold). China (soybeans) posted the largest decrease. Imports from countries other than the United States rose 1.1% to $19.4 billion, surpassing the record set in December.

Exports to the United States rose 1.1% to $34.0 billion in January, primarily on the strength of higher exports of crude oil. Imports from the United States were up 1.8% to $32.5 billion, mostly on higher imports of aircraft. As a result, Canada’s trade surplus with the United States narrowed for the sixth consecutive month, from $1.8 billion in December to $1.6 billion in January.