One of the largest oil and gas companies BP in its newest energy report is projecting that oil use will start to decline and may have peaked already. (Larry Macdougal/The Canadian Press/file)

Canada’s merchandise trade deficit hits a record

The government’s statistics agency reports that the merchandise deficit grew to $4.6 billion in December, almost entirely as a result of lower exports of energy products. These declined as a result of falling prices for crude oil.

Exports declined 3.8 per cent for the month. Imports were up 1.6 per cent largely because of greater imports of energy products. There was also an increase in the importation of motor vehicles and parts.

Deficit more than doubled from November

In the month of November, Canada’s merchandise trade deficit with the world was $2 billion.

The United States is by far Canada’s most important trading partner. In December, imports from countries other than the U.S. rose 9.2 per cent to a record $19 billion. There were  higher imports from Brazil (bauxite and aluminum oxide), China (various product) and the Russian Federation (crude oil).

There was an increase in the importation of motor vehicles and parts in December 2018. (iStock)

Categories: Economy
Tags: , ,

Do you want to report an error or a typo? Click here!

For reasons beyond our control, and for an undetermined period of time, our comment section is now closed. However, our social networks remain open to your contributions.