Canada July Figures Step Back From Record Trade Deficit

OTTAWA, (UrduPoint / Pakistan Point News - 2nd September, 2016) - Canada posted a Can $2.5 billion (US$1.9 billion) deficit in July, pulling back from a record shortfall the previous month, the government statistical agency said Friday.

Imports edged down 0.1 percent to Can$45.2 billion while exports increased 3.4 percent to Can$42.7 billion in July. After a record deficit in June, which was revised to Can$4.0 billion by Statistics Canada in its latest report, analysts had predicted a Can$3.2 billion deficit in July.

Government figures showed exports to the United States rose while imports fell modestly, widening Canada's trade surplus with its biggest trading partner. There were also higher exports to Britain and China, where Prime Minister Justin Trudeau travelled this week to drum up more trade and investment.

Exports to Germany and South Korea, however, fell. Increased imports from Saudi Arabia and Australia, meanwhile, were partially offset by lower imports from the Netherlands. Imports of precious metal ores from the Dominican Republic also jumped.

Overall, exports of motor vehicles and parts turned around after five consecutive monthly declines. Statistics Canada said "shorter seasonal shutdowns in July" at some Canadian auto assembly plants contributed to the increase. Higher exports of unwrought gold to Britain led widespread increases in exports of precious metals and alloys.