Canada's trade deficit shrinks to C$1.31 billion as exports rise, driven by metals and gold, despite a record low share of US exports.
Canada's international merchandise trade deficit narrowed to C$1.31 billion (US$957 million) in December as exports outpaced imports, though the share of exports to the US fell to a record low outside the pandemic months, reports Reuters.
Statistics Canada stated that total exports rose by 2.6 per cent to C$65.63 billion, driven by an 18 per cent surge in metals and non-metallic mineral products. Exports of unwrought gold jumped more than 37 per cent due to higher prices. Excluding metals, exports edged down by 0.2 per cent.
Imports increased by 0.6 per cent to C$66.93 billion, led by gold, passenger vehicles, and energy products. Economists had expected a deficit of about C$2 billion.
Exports to the US rose by 1.1 per cent but accounted for only 67.4 per cent of Canada's total, down from 76.2 per cent a year earlier, marking the lowest share since records began, apart from two pandemic months. Imports from the US rose by 3.5 per cent, narrowing Canada's surplus with its southern neighbour to C$5.7 billion.
Exports to other countries reached an all-time high in December, led by gold shipments to the UK. Imports from non-US markets fell by three per cent, narrowing Canada's deficit with those countries to C$7 billion from C$9 billion in November.
