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Canada posts record trade deficit in September

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Staff Writer | November 7, 2016
The Canadian economy recorded a CAD 4.1 billion trade gap in September of 2016, following an upwardly revised CAD 1.99 billion shortfall in the previous month.
Canadian economy
Canadian business   Imports in Canada increased 4.7 percent
It is the biggest gap on record, due to a one-off import of machinery for an oil project.

Imports increased 4.7 percent to a record CAD 47.6 billion in September, boosted by a 71.4 percent jump in purchases of industrial machinery, equipment and parts.

The gain was attributable to one large import of a module from South Korea destined for the Hebron offshore oil project in Newfoundland and Labrador. No additional high-value import transactions are expected for this project.

Excluding the CAD 2.9 billion change in imports of industrial machinery, equipment and parts, total imports would have decreased 1.6%, resulting in a trade deficit of CAD 1.2 billion.

Exports edged up 0.1 percent to CAD 43.5 billion as a 0.9 percent increase in prices was mostly offset by a 0.8 percent decrease in volumes.

Considering the third quarter, exports rose 5 percent to CAD 130.3 billion, the strongest increase since the first quarter of 2014. Imports went up 2.4 percent to CAD 138.5 billion.

Consequently, the trade deficit narrowed to CAD 8.2 billion from a record of CAD 11.1 billion in the previous period.