- Robert Lawrie, at Bloomberg Economics
Canada's merchandise trade deficit increased to a record high in March as the value of energy exports fell and imports of consumer goods rose. Canada's trade deficit expanded to C$3.02 billion in March, following a revised deficit of C$2.22 billion in February, according to Statistics Canada. Canada's trade balance has been driven by crude oil prices that plummeted more than 50% in the second half of last year, turning the nation's surplus of C$2 billion into six consecutive deficits. Energy exports declined by 8.9% to C$6.89 billion in March, including a 29.7% plunge in refined petroleum products to C$855 million. Energy prices fell 7% and volumes dropped 2.1%. From 12 months earlier, energy exports dived by 43.7%.
However, excluding energy, exports increased by 2.4% in March, including an 11.7% surge in automobiles and parts to C$6.6 billion. Total exports rose 0.4% in March to C$42.5 billion, and declined 3.1% from a year earlier. Imports rose 2.2% to a record C$45.5 billion, as consumer goods advanced by 7.9% to C$9.98 billion. Goods shipped from China surged 28.1% to C$4.12 billion. The volume of exports soared 1.9% and import volumes increased 1.5%, according to Statistics Canada. Exports to the US, which accounted for 74.0% of Canada's global total in March, fell by 1.7%, while imports dropped 0.9%.
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