Canada unexpectedly records $526M trade surplus on import drop
Canada’s economy recorded a trade surplus for the first time since December 2016, largely driven by falling imports.
The nation posted a $526 million surplus in August, its first since December 2016, Statistics Canada reported in Ottawa. The move into surplus was due to a 2.5 per cent drop in imports. Exports also fell by 1.1 per cent.
The trade picture in August is consistent with what the economy has seen in recent months — an improving trade balance driven largely by fewer purchases of goods from abroad. Canada’s trade deficit in July was just $189 million, but the gap had reached as high as $4.1 billion earlier this year.
The drop in imports is reflecting in part tariffs imposed by Canada on U.S. goods this summer, in retaliation for U.S. tariffs on steel and aluminum.
Despite the export decline in August, Canadian shipments of goods abroad have actually seen an improvement this year from a lackluster performance in 2017.
-In volume terms, which strip out price gains, exports fell 0.7 per cent and imports declined by 1.5 per cent
-Economists surveyed by Bloomberg News were anticipating a deficit of $500 million in August
-Canada’s trade surplus with the U.S. was unchanged at $5.35 billion
-The decline in imports was led by a 28 per cent drop in purchase of aircraft-related products
-Consumer-good imports recorded a 3.7 per cent drop
–With assistance from Erik Hertzberg.
Source: BNN Bloomberg
https://www.bnnbloomberg.ca/canada-unexpectedly-records-526m-trade-surplus-on-import-drop-1.1148119
