January 23, 2019

Trade deficit contracts to $1.9B in April

08 June 2018, 07:08 | Joann Bryant

Canada’s Trade Deficit Narrows to Six-Month Low

Canadian exports hit all-time high in April

Economists forecasted that the trade deficit would remain unchanged in April at its $49 billion.

The trade surplus with the USA widened to C$3.6 billion in April, after falling to C$2 billion in March.

The smaller-than-expected deficit came as exports rose 1.6 per cent to a record $48.6 billion in April boosted by exports of metal and non-metallic mineral products, consumer goods and energy products. According to Statistics Canada's data, in 2017, the export value of aluminum products that are subject to the 10 per cent rate was $9.2 billion, while the value of steel exports subject to the 25 per cent rate was $7.2 billion.

In April, exports of goods and services rose 0.3 percent to a record $211.2 billion. I'm skeptical. The trade deficit was deteriorating through February and hit $57 billion before rebounding in the most-recent report.

"We firmly believe that the growth in aggregate demand in the USA is outstripping supply and expect the trade gap to widen later in the year but for now we appear on track for trade to add to second-quarter growth, which would push real GDP growth in the quarter above four percent", the said in a research note.

On June 1, the US imposed tariffs on some Canadian steel and aluminum products of 25 per cent and 10 per cent, respectively.

On the other hand, imports of other commodities showed a decline; such as petroleum products by 26.5 percent, plastics by 2.1 percent, corn by 18.6 percent, and wood and articles thereof by 18.4 percent.

Americans imported fewer mobile telephones and consumer goods as well as passenger cars.

CAPMAS ascribed this hike to the increase of imports of raw materials of iron or steel by 22 percent, crude oil by 182.1 percent, wheat by 1.8 percent and pharmaceuticals by 0.3 percent. But despite the declines in March and April, the deficit for the first four months of 2018 was still almost 12% higher than the same period a year ago. In terms of volume, exports grew by a slightly less pronounced 1.2 percent. Exports and imports of goods account for about three-fourths of America's total trade. Crude oil imports rose $1.0 billion in April, with prices averaging $54.50 per barrel. Weak productivity suggests the economy could struggle to maintain the current strong pace of growth.

Other News

Trending Now

Trump Says He May Pardon Late Boxing Champion Muhammad Ali
Ali remained free while he appealed the conviction, but he was stripped of his world heavyweight title and his boxing license. In response to one reporter's question, Trump also confirmed that one name not on his list for potential pardons was O.J.

Feisty Halep to face chilled out Stephens in Paris
But it took Muguruza quite a while to get going against Halep, who managed to keep sending ball after ball back over the net. She said she expected an intense match against Sharapova, and, in a way, it was - intensely straightforward and efficient.

Democrats try to make a blue wave out of a ripple
However, the state's high incidence of postal voting means the results in several key races remained unclear on Wednesday morning. In another, Issa's district, Republican Diane Harkey was leading in early returns, as two Democrats vied for the second slot.

Top aide to EPA chief Scott Pruitt resigns
The report comes as numerous reports on Pruitt's spending habits have distracted from the agency's work. Pruitt's statement announcing her resignation called Hupp "a valued member of the EPA team".

First lady's office pushes back against Giuliani on Stormy Daniels comment
The first lady's spokeswoman reproached Giuliani for his comments on Thursday, CNN reports. "I don't believe Mrs. Adult film actress Stormy Daniels speaks outside federal court in NY on April 16, 2018.

'God of Cricket' Sachin Tendulkar trolled for alleged nepotism
Arjun had been picked in the Mumbai Under-19 one-day side for the JY Lele invitational tournament in September a year ago . The youngster was named in the India U19 team for the four-day fixtures to be played in Sri Lanka.

Judge who gave Stanford swimmer 6 months gets recalled
For the Recall Persky campaign, that required 90,000 signatures from Santa Clara voters and a meticulously crafted spiel. Only five states - California, Arizona, North Dakota, Oregon and Wisconsin - allow judges to be recalled for any reason.

Search Team of Missing Plane Yet to Start The Hunt
This, according to officials, forced the pilots to take the Kinangop route, which is considered risky because of the weather. It lost contact with the control tower at Nairobi's Jomo Kenyatta International Airport a few minutes before landing.

Duterte will quit 'if enough women protest' against his kiss
Right before mentioning this plan, Duterte said he would use certain powers "to the hilt" to address criminality. She said in a video released by Philippine News Agency: "There's no malice".

Trooper stops retired cop who delivered him 27 years ago
Bailly was pulled over Friday because of tinted windows on his vehicle and was advised to correct the problem, police said. After the Pattersons called their doctor, he guided a young Bailly over the phone so he could deliver the baby.