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July 6, 2017
Canada's trade deficit exceeds$1.1 billion in May
Statistics Canada announced that the country's merchandise trade deficit with the world reached $1.1 billion in May, up from a $552 million deficit in April.
The federal agency notes that Canada's trade activity has been strong in recent months, with imports and exports both reaching record highs, resulting in a total trade value of $98.5 billion in May. This represents a 13.8% increase over the same month last year.
Total imports rose 2.4% in May to $49.8 billion, a sixth consecutive monthly increase. Imports of aircraft and other transportation equipment and parts (+45.9%) led the increase, followed by imports of motor vehicles and parts which rose for a fifth consecutive month, up 3.7% to a record high $9.8 billion. Imports of energy products (+6.5% to $2.8 billion) also contributed to the overall gain in May.
Total exports rose 1.3% to a record high $48.7 billion, a third consecutive monthly gain. Exports of metal and non-metallic mineral products increased 11.1% to a record high $6.2 billion and exports of motor vehicles and parts rose 3.6% to $8.5 billion. However, exports of energy products fell 9.0% to $8.0 billion, largely offsetting the increases in May.
Imports from the United States rose 3.6% to a record high $32.7 billion in May, on higher imports of aircraft and motor vehicles. Exports to the United States edged down 0.3% to $36.3 billion. As a result, Canada's trade surplus with the United States narrowed from $4.8 billion in April to $3.5 billion in May.
Exports to countries other than the United States were up 6.2%, mainly on higher exports of unwrought gold to the United Kingdom. Imports from countries other than the United States edged up 0.2%, as higher imports from Saudi Arabia (crude oil), China and Belgium were largely offset by lower imports of cars from Germany. As a result, Canada's trade deficit with countries other than the United States narrowed from $5.3 billion in April to $4.6 billion in May.
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