Canadian Trade Deficit Narrows in May


In May of 2013, Canada's merchandise imports fell 3.2 percent and exports declined 1.6 percent. As a result, the trade deficit with the world decreased from $951 million in April to $303 million in May. The overall decline in exports was led by metal and non-metallic mineral products, as well as motor vehicles and parts, while imports fell largely due to lower imports of energy products, and metal ores and non-metallic minerals.

Exports declined to $39.3 billion as prices decreased 1.0% and volumes were down 0.7%. Exports of metal and non-metallic mineral products declined 15.0% to $4.2 billion in May. The main contributor to the section's decrease was unwrought precious metals and precious metal alloys, which fell 34.9% to $1.4 billion on lower volumes (-33.2%).

Exports of motor vehicles and parts declined 3.8% to $5.4 billion; volumes were down 3.9%. Passenger cars and light trucks led the overall decline, down 4.3% to $3.7 billion.

Exports of energy products increased 1.2% to $9.2 billion. A 3.3% gain in exports of crude oil and crude bitumen was partially offset by decreases in refined petroleum energy products (-7.0%) and natural gas (-6.2%).

Exports to the United States decreased 1.6% to $29.2 billion. Consequently, Canada's trade surplus with the United States went from $3.4 billion in April to $3.5 billion in May. Exports to countries other than the United States declined 1.6% to $10.1 billion.

Following four consecutive monthly increases, imports fell to $39.6 billion. Imports of energy products declined 18.4% to $3.2 billion in May, as volumes decreased 15.2%. Imports of crude oil and crude bitumen fell 34.1% to $1.5 billion, on lower volumes (-31.7%). This was the sixth consecutive monthly decrease in imports of crude oil and crude bitumen, and the lowest level since March 2009.

Imports of metal ores and non-metallic minerals fell 38.8% to $777 million, as volumes declined 32.9%. Widespread decreases in imports were recorded throughout the section, led by other metal ores and concentrates, mainly precious metal ores and concentrates, and precious metal bullion.

Following three consecutive monthly increases, imports of motor vehicles and parts declined 4.7% to $6.9 billion in May. Passenger cars and light trucks was the main contributor, falling 8.9%, entirely on lower volumes.

Imports of metal and non-metallic mineral products decreased 8.5% to $3.3 billion. Unwrought precious metals and precious metal alloys declined 34.0% to $624 million on lower volumes and prices.

Imports from the United States declined 2.0% to $25.7 billion, the first decrease in five months, due to lower imports of precious metals ores and concentrates, and precious metal bullion, as well as passenger cars. Imports from countries other than the United States fell 5.3% to $13.9 billion. 


Canadian Trade Deficit Narrows in May


Statistics Canada | Joana Taborda | joana.taborda@tradingeconomics.com
7/3/2013 2:12:48 PM