Canadian exports fell 29.7 per cent to $32.7 billion in April, the lowest level in more than 10 years, reported Statistics Canada on Thursday.
It also reported that imports were down 25.1 per cent to $35.9 billion, a value not seen since February 2011.
“These declines, in both absolute value and percentage, are unparalleled, as monthly decreases of this magnitude have never been observed,” said the federal agency.
“In April, production shutdowns in a number of manufacturing industries, falling energy product prices, the closure of many retail stores, and weaker demand due to physical distancing measures related to the COVID-19 pandemic, resulted in drastic decreases in Canada’s exports and imports.”
StatsCan said Canada’s merchandise trade deficit with the world widened from $1.5 billion in March to $3.3 billion in April.
“Energy products were a key contributor to the April decline in exports and imports. Exports of energy products fell by $3.6 billion, the largest decrease on record. This drop was led by a sharp decline in crude oil exports, which fell 55.1 per cent. Reduced demand for energy products in April due to confinement measures resulted in a drastic decrease in crude oil export prices, as well as lower export volumes,” said Statistics Canada.
“Despite the recent increase in market prices, crude oil export prices are likely to remain low in May, as crude oil price fluctuations are generally observed in export data with a certain delay. Imports of energy products fell by more than half in April, driven mostly by significant decreases in crude oil imports (-61.0 per cent). As with exports, the drop in demand led to lower prices and volumes in April. Volumes were also down because of the partial or complete closure of a number of Canadian refineries that import crude oil. Imports of refined petroleum products (-67.3 per cent) also fell in April on lower prices and volumes.”
