Statistics Canada says exports saw a slight decline and household spending slowed for a second straight quarter. (Photo by THE CANADIAN PRESS)

Statistics Canada reports trade deficit shrank to $3.2 billion in March

Mendes said a slowdown in exports in the first quarter appears to have been partially tied to oil production restraint in Alberta

Canada’s trade deficit shrank in March but not as much as expected as exports, led by the energy sector, climbed higher.

Statistics Canada said Thursday the merchandise trade deficit for March amounted to $3.2 billion compared with $3.4 billion in February.

Economists had expected a deficit of $2.45 billion, according to Thomson Reuters Eikon.

“The headline trade deficit looked ugly in March, but the details were at least slightly prettier,” CIBC economist Royce Mendes wrote in a report.

Mendes said a slowdown in exports in the first quarter appears to have been partially tied to oil production restraint in Alberta.

“But, even outside of that sector, growth in outbound shipments has been sluggish in recent years, suggesting the need for a weaker Canadian dollar over the medium-term to increase Canada’s international competitiveness,” he said.

Canadian exports rose 3.2 per cent to $49 billion.

READ MORE: BMO CEO says Canada’s economic growth ‘moderating’, but ‘no screeching halt’

The growth came as exports of energy products rose 7.7 per cent to $9.6 billion in March and motor vehicles and parts gained 5.6 per cent at $7.7 billion.

Meanwhile, imports rose 2.5 per cent to $52.3 billion, as consumer goods posted the largest increase.

Imports of consumer goods rose 6.7 per cent in March to a record $10.9 billion, boosted by imports of clothing, footwear and accessories. Imports of motor vehicles and parts rose 4.9 per cent to $9.9 billion.

Breaking down the trade figures by region, Canada’s trade deficit with countries other than the United States hit a record $6.8 billion in March compared with $6.4 billion in February.

Exports to countries other than the United States rose 8.8 per cent in March to $12.7 billion, while imports from those countries rose eight per cent in March to $19.5 billion.

Meanwhile, Canada’s trade surplus with the United States increased to $3.6 billion in March from $3 billion in February.

Exports to the United States rose 1.3 per cent to $36.4 billion, while imports from the United States fell 0.4 per cent.

The Canadian Press

Like us on Facebook and follow us on Twitter.

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Just Posted

District of Kent reopening facilities to the public

Enhanced COVID-19 protocols in place throughout

Pedestrian struck in late-night collision on Highway 1 in Hope

RCMP were on scene at the incident near Flood Hope Road where traffic was rerouted for eight hours

District of Kent Council: Additional Notes

Further agenda items from the May 25 meeting

Police say Chilliwack driver who flipped car on overpass Sunday was impaired

Witnesses say rollover incident was preceded by vehicle and motorcycles speeding all over town

Chilliwack teachers and EAs concerned with health and safety plans

As schools get ready to open, many worry measures won’t be enough to protect students from COVID-19

Only four new COVID-19 cases, 228 active across B.C.

Health officials watching as activities ramp up

Facing changes together: Your community, your journalists

The COVID-19 pandemic has changed the world in ways that would have… Continue reading

Feds looking at ways to reunite families amid COVID-19 border restrictions with U.S.

Some families with members of dual-citizenship have become separated due to the pandemic

Condition in kids with possible COVID-19 link being studied in Canada

This month, the U.S. Centers for Disease Control and Prevention issued an alert to doctors about MIS-C

‘I knew what he wanted’: Kootenay man spends hours in tree as black bear patrols below

Francis Levasseur is no stranger to the outdoors, but a recent run-in with a bear caused quite a scare

COVID cancelled their wedding plans, so they married on a BC mountaintop

Ceremony was live streamed to friends and family around the world

Trudeau acknowledges racial unrest in U.S.; ‘We also have work to do in Canada’

‘Anti-black racism, racism, is real; it’s in the United States, but it’s also in Canada,’ Trudeau says

State of Local Emergency declared for Boundary as communities brace for river flooding

Warm weather and heavy rain could cause sections of Kettle River system to swell beyond 2018 levels

Large cruise ships barred from Canadian waters until end of October: Garneau

Last year 140 cruise ships brought more than two million visitors to Canadian ports

Most Read