Figures released Tuesday morning by Statistics Canada show that our country's trade deficit unexpectedly jumped to $1.91 billion in February from $628 million in January as exports slumped by their most in nearly seven years
The deficit was far greater than the $900-million shortfall analysts had predicted. February marked the 18th-consecutive monthly trade deficit, reflecting the continuing economic damage caused by low oil prices.
Exports, which hit a record high in January, fell 5.4% on lower shipments of consumer goods, energy products and motor vehicles and parts. Prices dropped by 3.2% while volumes declined by 2.2%
It was the largest month-on-month fall in exports since the 8.3% swoon seen in May 2009.
Imports decreased by 2.6%, pulled down by lower oil imports as refineries in eastern Canada sourced more of their crude oil domestically. Overall, import prices slipped by 1.4% while volumes shrank by 1.2%
Exports stateside, which accounted for 75.9% of Canada’s global total in February, fell by 5.6% while imports dropped by 2.7%. As a result, Canada’s trade surplus with the United States slipped to $2.68 billion from $3.80 billion in January.
