Statistics Canada reports merchandise trade deficit $160 million in December

By The Canadian Press
Tue., Feb. 7, 2023
OTTAWA – Canada posted a merchandise trade deficit of $160 million in December as both exports and imports fell compared with November, Statistics Canada said. The result followed a revised deficit of $219 million for November compared with an initial reading for the month that showed a $41 million deficit.

BMO Capital Markets economist Shelly Kaushik said December was the second straight deficit, as lower energy prices weighed on exports.
“However, real trade flows were more encouraging, and suggest that trade will add meaningfully to fourth-quarter growth,” Kaushik wrote in a report.

Statistics Canada said exports in December fell 1.2 per cent in the month to $63.0 billion. Energy exports fell 7.6 per cent to $14.3 billion, while exports of farm, fishing and intermediate food products dropped 9.9 per cent to $5.3 billion.

Meanwhile, imports dropped 1.3 per cent in December to $63.1 billion as imports of consumer goods fell 6.4 per cent to $12.1 billion and motor vehicles and parts dropped 6.0 per cent to $9.9 billion.

In volume terms, total exports in December rose 0.9 per cent, while import volumes fell 1.9 per cent.

Statistics Canada said Canada’s trade deficit with countries other than the U.S. was $7.1 billion in December compared with $7.3 billion in November as imports from countries other than the U.S. fell 3.8 per cent, but exports to those same countries dropped 4.5 per cent.