A worker installs parts on the production line at Chrysler’s plant, in Windsor, Ont., on January 18, 2011. Statistics Canada says the country’s merchandise trade deficit was $2.45 billion in July as both imports and exports continued to post strong gains, but remained below pre-pandemic levels. THE CANADIAN PRESS/Geoff Robins

Statistics Canada says merchandise trade deficit $2.45 billion in July

Motor vehicles and parts helped boost both imports and exports in July

Canada’s merchandise trade deficit was $2.45 billion in July as both imports and exports continued to post strong gains, but remained below pre-pandemic levels, Statistics Canada said Thursday.

The result compared with an updated deficit figure of $1.59 billion for June. The agency’s initial estimate for that month had been a deficit of $3.19 billion for the month.

Economists on average had expected a deficit of $2.5 billion for July, according to financial markets data firm Refinitiv.

“This report provides more evidence that Canada’s economy is recovering from the pandemic more quickly than we had originally expected,” Paul Ashworth, chief North America economist for Capital Economics, wrote in a brief note.

“Overall, while trade is still a little shy of pre-pandemic levels, the bulk of the losses during the lockdowns have already been reversed.”

Compared with February, the month before the pandemic brought the economy to a near halt, Statistics Canada said imports were down 4.1 per cent and exports were off 6.0 per cent.

The motor vehicles and parts product category helped boost both imports and exports in July as the auto industry adjusted to the impact of COVID-19 by ramping up production after shutting down earlier this year and going through a shorter-than-usual shutdown period in the month, Statistics Canada said.

Imports for July rose 12.7 per cent to $47.9 billion as imports of motor vehicles and parts increased 50.3 per cent, while exports rose 11.1 per cent to $45.4 billion as exports of motor vehicles and parts increased 37.0 per cent.

In volume terms, imports rose 11.2 per cent for July, while exports gained 8.6 per cent.

The overall increase in the trade deficit came as Canada’s trade surplus with the United States increased to $2.9 billion in July compared with $2.7 billion in June.

Meanwhile, Canada’s trade deficit with countries other than the United States increased to $5.3 billion in July compared with $4.3 billion in June.

Monthly service exports rose 0.6 per cent to $8.7 billion in July, while service imports edged up 0.2 per cent to $8.5 billion.

Statistics Canada said the trade deficit with the world for goods and services combined was $2.2 billion in July.

The Canadian Press

Like us on Facebook and follow us on Twitter.

Want to support local journalism? Make a donation here.

economy

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Just Posted

Small force of locals team up for Sylvan Lake Underwater Cleanup

The annual cleanup was focused on getting an much garbage out of the lake as possible

Central zone active cases down to 20

Province provides update

Gord Bamford serenades Sylvan Lake at sold out concert

Gord Bamford played for a sold out crowd at a drive-in concert Sept. 19 in Sylvan Lake

Snake Lake Brewing takes home gold in the Canadian Brewing Awards

Central Alberta breweries Hawk Tail Brewery and Blindman Brewing also brought home top accolades

Central Alberta rancher-turned-writer brings life experiences into fiction

J.L. Cole explores the complexities of relationships in debut novel Silver Heights

Quirky Canadian comedy ‘Schitt’s Creek’ takes Emmys by storm with comedy sweep

Toronto-raised Daniel Levy and Ottawa-born Annie Murphy both got supporting actor nods

Public health officials urge Canadians to limit contacts again as COVID-19 cases rise

Canada has committed $1 billion to buy at least 154 million doses of vaccines from five different companies

Majority of Canadians support wearing masks during COVID-19, oppose protests: poll

Nearly 90 per cent felt wearing a mask was a civic duty because it protects others from COVID-19

RCMP say body located of man who fell in river during stop for photos in Banff

Parks Canada has said the man was from India and living in Canada on a work visa

Paper towel in short supply as people stay home, clean more, industry leader says

While toilet paper consumption has returned to normal levels, paper towel sales continue to outpace pre-COVID levels

Lacombe beekeepers give the buzz on winterizing hives

Winterizing a honeybee hive is not a simple task, local apiarists say

Six injured, man in custody following BB gun incident in Alberta, RCMP say

Airdrie’s downtown core was told to shelter-in-place, while others nearby were asked to stay inside

Nearly 20 per cent of COVID-19 infections among health-care workers by late July

WHO acknowledged the possibility that COVID-19 might be spread in the air under certain conditions

Most Read