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

Here’s the latest on the proposed inland port development process

Council to discuss proposal Sept. 28, public hearing to be held approximately one month later

Cullen confirmed as B.C. NDP candidate for Stikine despite party’s equity policy

Former Tahltan Central Government President Annita McPhee said the process made her feel “abused”

Financial fallback plan in place for Mills Memorial replacement

That’s in case province rejects first submission

Local Skeena candidates for the Oct. 24 snap election

Current BC Liberal MLA Ellis Ross will be running again, as will Nicole Halbauer for BC NDP

B.C. reports 91 new cases as officials remain worried over ‘clusters of COVID-19

There have now been a total of 8,395 cases in B.C. since the pandemic began

Canada’s active COVID-19 cases top 10,000 as daily new cases triple over the past month

Dr. Tam repeated her warning to young people, who have made up the majority of recent cases

First 8 months of fatal overdoses in B.C. have now exceeded 2019 death toll

Nine people died every two days in August, BC Coroners Service data shows

Liberal effort to reset policy agenda panned by rivals as too much talk, not action

Trudeau said it’s ‘all too likely’ families won’t be able to gather for Thanksgiving next month

‘Show us the money’ for cannabis, local governments tell B.C.

Municipal tax, transit revenues falling as costs rise

Join Black Press Media and Do Some Good

Pay it Forward program supports local businesses in their community giving

‘It’s a boy’: Southern Resident killer whale calf born to J Pod is healthy, researchers say

J35 had previously done a ‘Tour of Grief,’ carrying her dead calf for 17 days

People ‘disgusted’ by COVID-19 election call, B.C. Liberal leader says

Andrew Wilkinson speaks to municipal leaders from Victoria

Horgan blasts B.C. Greens for refusing youth overdose detention

Lack of support key to B.C. election call, NDP leader says

Most Read