Canada's trade deficit widened to $2.8B in May ahead of tariffs
Canada's trade deficit widened to $2.8B in May ahead of tariffs
Canada’s trade gap grows as imports rise, exports edge down
08 July, 2018, 22:49
The deficit on goods trade increased to Euro 4.9 billion from Euro 3.9 billion billion.
OTTAWA-Canada's trade deficit widened in May as automotive exports fell and aircraft imports from the US rose sharply.
In real terms, exports fell 1 percent, owing to the lower exports of metal ores and non-metallic minerals. Deficit widened to CAD 2.8 billion from a slightly revised CAD 1.90 billion in April.
Imports rose 1.7 per cent in May, after falling a month earlier. Imports rose 1.7 percent, driven by aircraft and other transportation equipment and energy products.
Amid trade tensions with the United States, a "disruption" in the supply of auto parts from the U.S. in May led to a 4.9 percent decline in exports of passenger cars and light trucks. "The value of aircraft imports from January to May was a record high for this period".
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"Energy imports swelled to compensate for temporary shutdowns at Canadian refineries".
Exports slipped by 0.1 percent as shipments of motor vehicle and parts fell by 3.6 percent amid a disruption in the supply of auto parts from a plant in the United States.
The trade deficit rose to Euro 6.0 billion in May from Euro 5.21 billion in the previous month.
Imports from the United States rose one percent in May, totaling Can$32.6 billion, but exports to the U.S. edged down by 0.2 percent to Can$35.9 billion.
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Exports declined mostly because of weaker trade on motor vehicles and parts as well as metal ores and non-metallic minerals. With more people searching for work, Statistics Canada reported the national unemployment rate rose to six per cent.
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