Canada’s trade surplus fell in August to Can$1.5 billion (US$1.1 billion) — its lowest level so far this year — as both exports and imports slumped, the government statistical agency said Wednesday.
The surplus narrowed from a revised Can$2.4 billion in July (previously Can$4 billion) and was “slimmer-than-expected,” according to CIBC analyst Andrew Grantham.
Exports decreased 2.9 percent to Can$65.4 billion, led by lower exports of energy products, while imports fell 1.7 percent to Can$63.9 billion, mainly on lower imports of motor vehicles and parts, said Statistics Canada.
Energy exports accounted for more than 28 percent of total exports in August. The drop in this segment was led by crude oil.
Wheat exports also fell, but production was forecast to bounce back in 2022/2023 after a poor harvest this year.
Canola exports were also down, as were shipments of gold bars to the United States following peak exports in May and June.
Imports of passenger cars and light trucks as well as parts, meanwhile, continued to be affected by supply chain woes.
Also down were imports of basic and industrial chemical, plastic and rubber product, metal and non-metallic mineral product, electronic and electrical equipment and parts, and energy products.
Those were partially offset by higher imports of industrial machinery linked to a new liquefied natural gas terminal currently being built in British Columbia.
Trade with the United States declined, but Canada still managed to maintain a surplus with its largest trading partner, while a deficit with all other countries widened for the first time in four months.
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