Canada posts small trade deficit in January

OTTAWA, Mar 8 (AFP): Canada's trade swung into virtual balance in January with a deficit of only Can$177 million, compared to a Can$922 million deficit the previous month, the government said Friday.

The improved trade balance surprised economists who had expected a Can$1.5 billion deficit. Statistics Canada also revised downward by nearly half its initial estimate of the December deficit from Can$1.7 billion.

The change was due to a 1.6 per cent drop in imports to Can$40.8 billion in January, with energy and auto parts imports declining due to the closing of US factories because of harsh winter weather.

Exports rose slightly, 0.2 per cent, to Can$40.6 billion, reflecting a 5.8 per cent increase in prices and a 5.3 per cent drop in volume.

Canada posted a Can$3.6 billion trade surplus with the United States, its top trading partner. Imports from the United States fell to Can$27.1 billion, a 1.8 percent drop, while exports were down 0.1 percent at Can$30.7 billion.