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- Canada’s trade deficit widens more than anticipated in April
Canada’s trade deficit widens more than anticipated in April
Canada’s trade
deficit widens more than anticipated in April
Statistics
Canada announced on Thursday that Canada’s merchandise trade deficit stood at
CAD3.25 billion in April, widening from a revised CAD1.53 billion gap in March
(originally a CAD1.41-billion gap). That was the largest trade gap since
February 2019.
Economists had
expected a deficit of CAD2.36 billion.
According to
the report, the country’s both imports and exports decreased drastically, due
to production shutdowns in a number of manufacturing industries, falling energy
product prices, the closure of many retail stores, and weaker demand due to
physical distancing measures related to the COVID-19 pandemic.
Canada’s
exports tumbled 29.7 percent m-o-m to $32.66 billion in April, the lowest level
since January 2010, driven by lower exports of motor vehicles and parts (-82.9
percent m-o-m, the largest decline ever observed), energy products (-43.6
percent m-o-m, the largest decrease on record) and consumer goods (-14.5
percent m-o-m).
Meanwhile,
imports plunged 25.1 percent m-o-m to $35.91 billion in April, a level not
observed since February 2011, driven by declines in imports of motor vehicles
and parts (-77.1 percent m-o-m, another unprecedented decline), energy products
(-53.6 percent m-o-m) and consumer goods (-11.6 percent m-o-m, the largest decrease
since 1988).
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