Canada trade deficit widened to Can$1.9 billion in May

A barge floats down the Saint Lawrence River near the Quai Chouinard as the sun rises over Quebec City and Levis, Quebec on December 9, 2021. Barges travel down the St. Lawrence River to connect to the St. Lawrence Seaway, a waterway connecting Montreal, Quebec all the way to the US. (Photo by Andrej Ivanov / AFP)

Ottawa, Canada — Canada posted a third consecutive monthly trade deficit in May, widening from Can$1.3 billion to Can$1.9 billion (US$ 1.4 billion), the national statistical agency said Wednesday.

Exports fell 2.6 percent to Can$62.4 billion — the lowest level in almost one year — while imports dropped 1.6 percent to Can$64.4 billion, according to Statistics Canada.

Analysts had forecast a slightly lower May trade deficit, following a shortfall the previous month that has been revised upward.

The decline in exports was led by fewer shipments of unwrought gold, despite recent high demand for gold as a hedge against global political and economic uncertainty.

READ: US trade deficit expands less than expected in May — gov’t

Exports of copper ores and concentrates mainly to Japan also fell, along with exports of crude oil and bitumen, and of propane to Japan.

A decline in aircraft exports, following strong sales the previous month of business jets to countries including Malta, Spain, and Denmark, was partially offset by higher sales of Canadian-manufactured light trucks to the United States.

Fewer sport utility vehicles and other light trucks were also imported into Canada from its neighbour to the south. Statistics Canada noted that delays in the production and shipment of key models to Canadian dealerships this year contributed to large monthly variations that continued in May.

Imports of crude oil and crude bitumen, meanwhile, fell largely due to lower shipments from the United States. Imports of aviation fuel from the United States and India were also lower.

But imports of gold for refining from several countries, including Brazil, Mauritania, Chile and Guyana increased.

Additionally, imports of copper ores and concentrates more than doubled, with higher imports coming from Chile.