Canada’s merchandise trade deficit with the world narrowed from $4.3 billion in April to $677 million in May, according to a new report released Thursday by Statistics Canada.
“Following historic declines in April that saw exports and imports lose more than one-quarter of their monthly value due to the COVID-19 pandemic, exports increased 6.7 per cent in May, mainly reflecting the resumption of production in the auto industry as well as higher crude oil prices. Meanwhile, imports decreased a further 3.9 per cent, reflecting supply challenges at a time when various economies around the world were progressively re-opening,” said the federal agency.
Following a 29.1 per cent decline in April, total exports increased 6.7 per cent in May, reaching $34.6 billion, it said. Increases were observed in eight of 11 product sections and non-energy exports were up 5.6 per cent. However, on a year-over-year basis, total exports were down 34.1 per cent.
“After declining by almost half in April, exports of energy products rose 14.5 per cent in May, mainly on higher exports of crude oil (+26.1 per cent). Higher crude oil export prices were behind the increase in May, after falling sharply since January. Crude oil export volumes were also up in May. Despite these increases in prices and volumes, the monthly value for crude oil exports this month was still about one-third of what it was in January,” said StatsCan.
After falling 25.2 per cent in April, total imports declined a further 3.9 per cent in May to $35.3 billion, with seven of 11 product sections decreasing. On a year-over-year basis, total imports have lost almost one-third of their value, added the federal agency.
