Published: Sun, July 08, 2018
Finance | By Claude Patterson

Canadian good trade deficit widens in May

Canadian good trade deficit widens in May

Canada's trade deficit in May grew to $2.77-billion from $1.86-billion in April on a sharp rise in imports of airliners and gasoline while exports edged down, Statistics Canada said on Friday.

"Imports rose 1.7 per cent in May to $51.1 billion, with eight of 11 product sections increasing".

Imports rose 1.7 per cent in May, after falling a month earlier.

Exports fell 2.0 percent month-over-month in May, reversing a 2.9 percent increase a month ago.

The May figure was significantly higher than economists' average prediction of Can$2.1 billion. "Imports in the aircraft category, for their part, were lifted by the delivery of several airliners from the United States". Meanwhile, exports of aircraft and other transportation equipment and parts rose strongly by 7.8 percent in the month on the back of exports of transportation equipment to Saudi Arabia. Imports rose 1.7 percent, driven by aircraft and other transportation equipment and energy products. A number of Canadian refineries were temporarily shut down in May. "For the refined petroleum energy products group, volumes rose 14.7 per cent while prices fell 0.8 per cent".

Imports from the United States rose one percent in May, totaling Can$32.6 billion, but exports to the USA edged down by 0.2 percent to Can$35.9 billion.

Total non-US imports were Can$18.5 billion, with the largest increases coming from China, Belgium and Germany.

The trade deficit rose to Euro 6.0 billion in May from Euro 5.21 billion in the previous month.

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