Our merchandise trade deficit with the rest of the world was narrower than economists forecast in December, as Statistics Canada pointed Thursday to record exports of metals which masked a decline in crude oil shipments.
The deficit of $649 million followed a November shortfall that was revised to $335 million from $644 million, according to the nation's number crunchers. Economists surveyed by Bloomberg forecast a December deficit of $1.1 billion, based on the median of 15 forecasts.
Today’s report showed exports rose 1.5% to $44.1 billion in December, the fastest gain since May. Metal and non-metallic minerals including "unwrought precious metals and metal alloys," jumped 13.1% to a record $5.61 billion, the agency said. Energy shipments fell for a seventh straight month, by 10.3% to $8.56 billion, as prices fell 12.3% and volumes rose 2.3%..
Imports also rose at the fastest pace since May, gaining 2.3% to $44.7 billion, Statistics Canada said. Energy imports rose 9.3% to $3.48 billion as several refineries resumed full production after maintenance work, according to the agency, while the motor vehicle and parts category rose 3.3% to a record $8.07 billion.
The agency added that volume of exports advanced 3.5% and import volumes rose 2.8%. Volume figures adjust for price changes and can be a better indicator of how trade contributes to economic growth.
