In December, Canada's merchandise exports decreased 1.2%, mostly on lower exports of energy products. Meanwhile, imports were down 1.3%, mainly driven by lower imports of consumer goods. As a result, Canada's merchandise trade deficit with the world narrowed from $219 million in November to $160 million in December.
Total exports fell 1.2% to $63.0 billion in December, the lowest level since February 2022. Declines were observed in 7 of the 11 product sections, with exports of energy products leading the decreases. However, excluding energy products, exports posted an opposite movement, increasing by 0.8%.
Total imports fell 1.3% to $63.1 billion in December, the lowest level since March 2022. Decreases were observed in 7 of the 11 product sections, but the decline in imports was largely attributable to negative movements in the consumer goods and motor vehicles and parts product sections.
Imports from countries other than the United States decreased 3.8% in December, a second consecutive monthly decline. Imports from Switzerland (pharmaceutical products), Mexico (various products), and the Netherlands (motor gasoline) led the decreases.
Exports to countries other than the United States were down 4.5% in December. Exports to China (oilseeds and canola) and the United Kingdom (gold) posted the largest decreases.
Canada's trade deficit with countries other than the United States narrowed from $7.3 billion in November to $7.1 billion in December.
Exports to the United States edged down 0.1% in December, while imports saw a 0.2% uptick. As a result, the merchandise trade surplus with the United States narrowed for a seventh consecutive month, moving from $7.1 billion in November to $7.0 billion in December.
This is an excerpt from the 07 February 2023 edition of The Daily from Statistics Canada.