In June, Canada's merchandise exports decreased 2.2%, while imports were down 0.5%. As a result, Canada's merchandise trade deficit with the world widened from $2.7 billion in May to $3.7 billion in June.
Following a 3.0% decrease in May, total exports were down 2.2% in June, with 9 of the 11 product sections posting declines. Total exports in real (or volume) terms fell 1.1% in June. As for export prices, they declined for the 11th time in the past 12 months. From June 2022 to June 2023, total export prices decreased 14.2%. However, during the same period, the value of total exports declined 12.3%, meaning that exports in real terms in fact increased.
After rising 3.0% in May, total imports decreased 0.5% in June. While 7 of the 11 product sections posted declines, these were largely offset by the increase in imports of unwrought gold. In real (or volume) terms, imports were up 0.9%.
In June, exports to countries other than the United States decreased 5.5%, while imports from these countries edged down 0.1%. As a result, Canada's merchandise trade deficit with countries other than the United States rose from $10.4 billion in May to a record high of $11.2 billion in June.
In June, exports to the United States were down 1.2%, while imports decreased 0.7%. As a result, Canada's trade surplus with the United States narrowed from $7.7 billion in May to $7.4 billion in June.
In the second quarter of 2023, exports decreased 3.5%, a fourth consecutive quarterly decline. Exports of energy products (-9.0%) and farm, fishing and intermediate food products (-19.5%) drove the quarterly decrease. Excluding these two product sections, exports edged up 0.2% in the second quarter.
In real terms (calculated using chained 2012 dollars), exports fell 0.4% in the second quarter of 2023. Real exports of farm, fishing and intermediate food products (-14.8%) contributed the most to the decline. This decrease was partly offset by the increase in exports of motor vehicles and parts (+5.6%).
This is an excerpt from the 08 August 2023 edition of The Daily from Statistics Canada.