Canada’s trade deficit narrows as energy exports climb 14.9%
Canada’s merchandise trade deficit narrowed in February as prices for exported energy recovered from lows set during a crude oil crash last year.
The deficit of C$984 million ($778 million) followed a January shortfall that was revised to C$1.48 billion from an initial estimate of C$2.45 billion, Statistics Canada said Thursday in Ottawa. Economists surveyed by Bloomberg forecast a C$2 billion deficit for February, based on the median of 17 forecasts.
Energy exports rose 14.9 percent to C$8.78 billion, including a 45.1 percent jump for natural gas and a 9.3 percent rise for crude oil and bitumen. Prices rose 17.5 percent and volumes fell by 2.3 percent.
The report is the second this week signaling the effects of the crash in prices for crude oil, Canada’s top export, aren’t as dramatic as policy makers predicted. Statistics Canada two days ago reported the economy shrank 0.1 percent in January as increased oil production made up for lower prices, a report that came just after Bank of Canada Governor Stephen Poloz told the Financial Times that first-quarter growth could be “atrocious.”
Total exports rose 0.4 percent to C$43.5 billion in February, following a 1.7 percent decline in January.
Imports fell 0.7 percent to C$44.5 billion, Statistics Canada said.
The volume of exports declined 3.3 percent and import volumes fell 1.7 percent, Statistics Canada said. Volume figures adjust for price changes and can be a better indicator of how trade contributes to economic growth.
The surplus with the U.S. widened to C$2.95 billion in February from C$2.24 billion a month earlier. Exports make up about one-third of Canada’s economy, with about 75 percent of the shipments going to the U.S.
The deficit of C$984 million ($778 million) followed a January shortfall that was revised to C$1.48 billion from an initial estimate of C$2.45 billion, Statistics Canada said Thursday in Ottawa. Economists surveyed by Bloomberg forecast a C$2 billion deficit for February, based on the median of 17 forecasts.
Energy exports rose 14.9 percent to C$8.78 billion, including a 45.1 percent jump for natural gas and a 9.3 percent rise for crude oil and bitumen. Prices rose 17.5 percent and volumes fell by 2.3 percent.
The report is the second this week signaling the effects of the crash in prices for crude oil, Canada’s top export, aren’t as dramatic as policy makers predicted. Statistics Canada two days ago reported the economy shrank 0.1 percent in January as increased oil production made up for lower prices, a report that came just after Bank of Canada Governor Stephen Poloz told the Financial Times that first-quarter growth could be “atrocious.”
Total exports rose 0.4 percent to C$43.5 billion in February, following a 1.7 percent decline in January.
Imports fell 0.7 percent to C$44.5 billion, Statistics Canada said.
The volume of exports declined 3.3 percent and import volumes fell 1.7 percent, Statistics Canada said. Volume figures adjust for price changes and can be a better indicator of how trade contributes to economic growth.
The surplus with the U.S. widened to C$2.95 billion in February from C$2.24 billion a month earlier. Exports make up about one-third of Canada’s economy, with about 75 percent of the shipments going to the U.S.
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