OTTAWA — Canada’s merchandise trade deficit narrowed to $1.3 billion in September as imports fell more than exports, according to Statistics Canada.
Exports and Imports Trends
The result compared with a revised deficit of $1.5 billion for August. The initial estimate for August released last month had shown a deficit of $1.1 billion.
Exports: A Mixed Bag
Statistics Canada said the results for September came as total exports edged down 0.1 per cent to $63.9 billion.
Metal and Non-Metallic Mineral Products
- Exports of metal and non-metallic mineral products fell 5.4 per cent
- Exports of unwrought gold, silver, and platinum group metals, and their alloys, decreased 15.4 per cent
Energy Products
- Exports of energy products dropped 2.6 per cent as lower prices weighed on crude oil exports
Imports: A Decline in Metal and Non-Metallic Mineral Products
Imports for September fell 0.4 per cent to $65.1 billion as imports of metal and non-metallic mineral products dropped 12.7 per cent.
Volume Terms Analysis
In volume terms, total exports rose 1.4 per cent in September while total imports were essentially unchanged in September.
"Activity in volume terms was encouraging, suggesting net exports might add a little to economic growth in Q3 after dragging in the previous quarter," Bank of Montreal economist Shelly Kaushik wrote in a report.
Regional Trade Trends
Regionally, Statistics Canada said the country’s merchandise trade surplus with the United States was $8.3 billion in September compared with $7.8 billion in August as exports to the U.S. rose 1.6 per cent and imports from the U.S. gained 0.8 per cent.
Canada’s trade deficit with countries other than the United States was $9.6 billion in September compared with $9.3 billion in August.
Services Trade Deficit
In a separate release, Statistics Canada said the country’s international trade in services deficit was $1.2 billion in September compared with $1.4 billion in August as exports of services rose 1.6 per cent to $17.2 billion and imports of services gained 0.3 per cent to $18.4 billion.
Total Trade Deficit
When the international trade in goods and services were combined, Canada’s total trade deficit with the world was $2.5 billion in September compared with $2.9 billion in August.
Conclusion
The recent trade data suggests that Canada’s exports could add to third-quarter growth, which might be a positive sign for the country’s economy. However, it is essential to analyze these trends further and consider other economic indicators before making any conclusions about the country’s overall economic performance.
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