In January, Canada's merchandise imports decreased 3.8%, while exports fell 1.7%. As a result, Canada's merchandise trade balance changed position for a second consecutive month, moving from a deficit of $863 million in December to a surplus of $496 million in January. The January surplus is close to the typical bounds for monthly revisions to imports and exports.
Total imports decreased 3.8% in January to $61.8 billion, the lowest level since February 2022. Overall, 7 of the 11 product sections were down. On a year-over-year basis, imports were down 6.0% in January 2024. In real (or volume) terms, total imports fell 4.1% in January compared with the previous month.
Total exports decreased 1.7% in January, a third consecutive monthly decline. Decreases were observed in 8 of the 11 product sections. Exports were down 7.5% in January compared with the same month in 2023, when exports reached a peak. In real (or volume) terms, total exports fell 1.8% in January 2024 compared with December 2023.
Imports from countries other than the United States were down 7.3% in January, partly because of lower imports from China (various products) and South Korea (passenger cars and light trucks). Exports to countries other than the United States (-4.2%) also fell, in large part because of lower exports to Italy (aircraft and pharmaceutical products), China (coal), Norway (nickel), and Germany (crude oil).
Canada's trade deficit with countries other than the United States narrowed from $9.4 billion in December to $8.3 billion in January.
This is an excerpt from the 07 March 2024 edition of The Daily from Statistics Canada.