Canada's trade deficit widens
Thursday, 15 July 2010
OTTAWA, July 14 (AFP): Canada's trade deficit widened to 503 million Canadian dollars (488 million US) in May as both imports and exports increased, Statistics Canada said yesterday.
Exports rose 5.2 per cent after two months of declines, with automotive products accounting for more than half of the gains, the government agency said.
Imports were also up 5.7 per cent, led by machinery and equipment, industrial goods and materials as well as other consumer goods. Only agriculture and fishing products did not see gains.
Analysts had expected a trade deficit of 200 million dollars (194 million US) in May, after a revised 330 million dollar (320 million US) deficit the previous month.
Exports to the European Union increased 25.2 per cent while exports to the United States, Canada's largest trading partner, increased 5.5 per cent.
Imports from the United States grew 5.8 per cent-on the strength of automotive products.
Automotive exports saw a turnaround in January after trending downward for four years, and have more than doubled since the start of the year.
In May, automotive products exports rose 20.8 per cent to 5.4 billion dollars (5.2 billion US). "This gain reflected the popularity of some models manufactured in Canada," said Statistics Canada.
Exports of gold coins increased, while aircraft exports were lower.
Imports of office machines and equipment, meanwhile, increased 19.8 per cent "as new electronic products became available in May."
Imports of metals in ores also grew 34.2 per cent while precious metals increased 17.3 per cent "on the strength of gold."
Medicinal and pharmaceutical products accounted for most of the gains in imports of consumer goods in the month.
Exports rose 5.2 per cent after two months of declines, with automotive products accounting for more than half of the gains, the government agency said.
Imports were also up 5.7 per cent, led by machinery and equipment, industrial goods and materials as well as other consumer goods. Only agriculture and fishing products did not see gains.
Analysts had expected a trade deficit of 200 million dollars (194 million US) in May, after a revised 330 million dollar (320 million US) deficit the previous month.
Exports to the European Union increased 25.2 per cent while exports to the United States, Canada's largest trading partner, increased 5.5 per cent.
Imports from the United States grew 5.8 per cent-on the strength of automotive products.
Automotive exports saw a turnaround in January after trending downward for four years, and have more than doubled since the start of the year.
In May, automotive products exports rose 20.8 per cent to 5.4 billion dollars (5.2 billion US). "This gain reflected the popularity of some models manufactured in Canada," said Statistics Canada.
Exports of gold coins increased, while aircraft exports were lower.
Imports of office machines and equipment, meanwhile, increased 19.8 per cent "as new electronic products became available in May."
Imports of metals in ores also grew 34.2 per cent while precious metals increased 17.3 per cent "on the strength of gold."
Medicinal and pharmaceutical products accounted for most of the gains in imports of consumer goods in the month.