Canada’s trade deficit narrows to six-month low

Canada’s trade deficit narrowed to a six-month low in April according to Statistics Canada, with a decline in imports coupled with strong export performance.

This strong export performance demonstrates a good sign of strength for the Canadian economy, with exports previously stalling throughout the mid part of 2017.

Statscan reported a growth of 1.6 per cent in exports, the sixth gain in the last seven months, with a fall of 2.5 per cent in imports.

The strength in exports has been attributed to an increase in oil prices and an increased demand for nonenergy related exports.

Despite the decline in imports contributing to balancing the trade deficit, imports can be an important barometer of investment by Canadian businesses.

Imports of machinery and electronics declined 0.2 and 2 per cent respectively, which can be key indicators to measure investment.

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