Canada posted a Can$1.1 billion (US $827 million) trade deficit in October, stepping back from a record shortfall the previous month, the government statistical agency said Tuesday. The figure beat analysts' predictions of Can$2.1 billion after a record deficit in September, which was revised upward to Can$4.4 billion. Imports in the month fell 6.3 percent to Can$44.7 billion while exports rose 0.5 percent to Can$43.6 billion.
Statistics Canada noted a large decline in imports in October relative to the previous month because a one-time shipment of an oil platform from South Korea intended for the Hebron offshore oil project had boosted last month's total figures. There were lower imports from Algeria and Saudi Arabia in October, while imports from China and Switzerland rose.
Oil imports were lower, coinciding with scheduled maintainance work at eastern Canada refineries. Canada, however, imported more communications and audio and video equipment, including more cell phones from China and Vietnam. Higher exports of energy products and motor vehicles and parts, meanwhile, were partially offset by lower exports of consumer goods and aircraft and other transportation equipment and parts.
Energy exports increased for an eighth consecutive month, due to higher oil prices and more shipments of coal to India, Taiwan and the Netherlands. Exports of passenger cars and light trucks were also up. Canada also exported fewer pharmaceutical and medicinals products, and aircraft, while shipping more boats abroad (a record Can$349 million) mostly to Saudi Arabia. Canada's trade surplus with the United States, its largest trading partner, widened from Can$2.5 billion in September to Can$3.0 billion in October, led by higher crude shipments.
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