Canada’s merchandise trade deficit widens in June

Statistics Canada announced that Canada's merchandise trade deficit widened to CAD3.60 billion in June, compared to a revised CAD1.36-billion gap in May (originally a CAD1.09-billion deficit). Economists had expected a deficit of CAD1.35 billion.

According to the report, the country's exports decreased 4.3 percent m-o-m to CAD46.51 billion in June, hurt mainly by lower exports of unwrought gold and energy products. Meanwhile, imports rose 0.3 percent m-o-m to CAD50.12 billion, helped by stronger imports of gold bullion.

In volume terms, exports were down 1.7 percent m-o-m and imports were up 0.8 m-o-m in June.

On a quarterly basis, Canada's exports rose 2.8 percent q-o-q to a record high DAD142.7 billion in the second quarter, led by an increase in exports of metal and non-metallic mineral products and motor vehicles and parts. Meanwhile, imports surged 5.6 percent q-o-q to a record high CAD148.7 billion, supported by increases in all commodity sections. As a result, Canada's merchandise trade deficit widened from CAD2.0 billion in the first quarter to CAD 5.9 billion in the second quarter.