(Sept. 12, 2012) — Canada’s trade shortfall is the deepest since Stats Canada began keeping track in 1971.
According to the agency, Canada’s trade deficit jumped to $2.34 billion in July, the highest ever recorded, with both exports and imports declining during the month.
According to one economist quoted in the media, the shortfall reflects a “broad-based weakness” in the economy.
Canada’s merchandise exports fell 3.4% and imports decreased 2.2%, pushing Canada’s trade deficit with the world from $1.9 billion in June to $2.3 billion in July.
Exports fell to $37.7 billion as volumes decreased 2%, mainly due to energy products.
Imports, meanwhile, decreased to $40.1 billion, also as a result of lower imports of energy products as well as machinery and equipment.
Exports to the United States fell 5% to $27.4 billion in July, while imports declined 2.1% to $25.3 billion.
Exports of energy products fell 8.5% to $8.2 billion on lower volumes and prices. Exports of machinery and equipment decreased 5.5% to $6.7 billion, as widespread decreases were recorded within the sector, while automotive products decreased 5.3% to $5.9 billion, largely as a result of exports of passenger autos and chassis.