Cailian Press reported on August 5 that Canada’s merchandise trade deficit hit a record high in the second quarter, and the deficit widened further in June.
Canada’s trade deficit with the world widened to C$5.9 billion ($4.3 billion) in June from C$5.5 billion in May, according to data released by Statistics Canada on Tuesday. That was slightly lower than the median forecast of a C$6.3 billion shortfall by economists surveyed. Canada’s total merchandise imports rose 1.4% in June, the first increase in four months.
The main driver was a shipment of high-value equipment from the United States for an oil and gas project off the coast of Newfoundland. However, excluding industrial machinery, overall imports fell 1.9%.
Total merchandise exports rose 0.9% in June, the second consecutive month of growth, but this was mainly driven by rising crude oil and refined petroleum product prices. In terms of volume, total exports decreased by 0.4%, while total imports increased by 1.5%.