Canada’s trade deficit shrinks in July as West Coast port strike weighs
OTTAWA –recorded a smaller-than-expectedin July, as a West Coast dock workers’ strike weighed more heavily on imports than on exports, Statisticsdata showed on Wednesday.
‘swith the world came in at C$987 million ($722.97 million), lower than the C$3.65 billion shortfall analysts had forecast in a Reuters poll. June’swas revised to C$4.92 billion – the third largest on record – from a C$3.73 billioninitially reported.
Total exports rose 0.7 percent while imports decreased 5.4 percent in July.
Both were impacted by a 13-day dock workers’ strike in British Columbia that disrupted operations at two of‘s three busiest ports, Statscan said, adding thatmay also be affected in the coming months as freight backlogs continue to be cleared.
“This was pretty positive, surprisingly good data when you consider what we were dealing with in terms of the impact of the British Columbia port strikes in July,” said Stuart Bergman, chief economist at Export Development, the country’s export credit agency.
was among factors in an unexpected economic contraction in the second quarter and Bergman said Wednesday’sreport signals a good start to the third quarter on the export side of things.
The Bank ofon Wednesday held its key overnight interest rate at 5 percent, noting that the economy had entered a period of weaker growth, but said it could raise borrowing costs again should inflationary pressures persist.
The rise in exports was largely due to higher exports of canola, aircraft and other transportation equipment and parts offsetting the impact of the strike, Statscan said. By volume, exports fell 0.2 percent.
Imports recorded the biggest percentage decrease since January 2022, dragged lower by a decline in unwrought gold as well as the combined decreases of product categories, such as consumer goods and electronics, that rely on British Columbia ports. By volume, imports were down 4.3 percent.
The Canadian dollar was trading 0.1 percent lower at 1.3650 to the greenback, or 73.26 U.S. cents.
($1 = 1.3652 Canadian dollars)