Canada’s Merchandise Trade Deficit Reaches $1 Billion in April, According to Statistics Canada
Canada recorded a merchandise trade deficit of $1.0 billion in April, with an increase in exports of natural gas and crude oil, as reported by Statistics Canada on June 6.
Following a revised deficit of $2.0 billion in March (compared to an initial reading of $2.3 billion), total exports in April rose by 2.6 percent to $64.4 billion, driven by a 2.7 percent increase in energy product exports.
In April, natural gas exports surged by 60.1 percent, bouncing back from a low in March due to milder temperatures in the northeastern United States. Crude oil exports also increased by 3.0 percent during this period.
The export of metal and non-metallic mineral products saw a 4.7 percent rise, with a notable increase in exports of unwrought gold, silver, and platinum group metals—an area mainly comprising unwrought gold, up by 15.7 percent in April.
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On the other hand, total imports in April grew by 1.1 percent, reaching $65.5 billion, with imports of motor vehicles and parts up by 4.2 percent. Imports of aircraft and other transportation equipment and parts also saw a notable increase of 23.7 percent, driven by the delivery of several ships, including a ferry from China destined to operate between Newfoundland and Nova Scotia.
In terms of volume, exports increased by 1.7 percent in April, while import volumes decreased by 0.2 percent. CIBC senior economist Katherine Judge noted that this increase in export volumes aligns with other indicators showing a rebound in activity for April, contributing to growth in that month.
Additionally, Statistics Canada reported a rise in the country’s monthly international trade in services deficit to $1.1 billion in April from $900 million in March, with imports of services increasing by 1.1 percent to $18.0 billion and exports of services staying almost the same at $16.9 billion.
Combining international trade in goods and services, Canada’s total trade deficit with the world in April was $2.2 billion, down from $2.9 billion in March.
