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- Canada’s trade deficit widens less than anticipated in March
Canada’s trade deficit widens less than anticipated in March
Statistics Canada announced on Tuesday that Canada's merchandise trade deficit stood at CAD1.41 billion in March, narrowing from a revised CAD0.89 billion gap in February (originally a CAD0.98-billion gap).
Economists had expected a deficit of CAD2.00 billion.
According to the report, the country's both imports and exports decreased notably, as the impact of measures to contain the spread of COVID-19 in Canada became evident. Its exports fell 4.7 percent m-o-m to $46.3 billion in March, the lowest level since January 2018, driven by lower exports of aircraft and other transportation equipment and parts (-24.8 percent m-o-m), motor vehicles and parts (-14.4 percent m-o-m) and energy products (-7.4 percent m-o-m). Meanwhile, imports decreased 3.5 percent m-o-m to $47.7 billion in March, a level not observed since October 2017, led by declines in imports of aircraft and other transportation equipment and parts (-17.1 percent m-o-m), motor vehicles and parts (-13.1 percent m-o-m), and electronic and electrical equipment and parts (-3.5 percent m-o-m).
In the first quarter of 2020, exports decreased 3.0 percent, a third consecutive quarterly decline, imports fell 2.0 percent, following a 2.0 percent drop in the last quarter of 2019.
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