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).