"There aren't a whole lot of positives in this report. June is probably going to be weak" because of flooding in Alberta and a Quebec construction strike"
-Benjamin Reitzes, a senior economist at BMO Capital Markets
Canada's trade gap extended its longest streak of merchandise trade deficits in 25 years in May, as imports fell at a twice faster pace as exports did, Statistics Canada said Wednesday. According to the report, Canada posted its 17th monthly trade deficit, with a $303 million gap, while April's deficit was revised to $951 million from $567 estimated earlier. Imports to the country fell 3.2% to $39.9 billion in May, the fastest in almost one year, following April's 0.4% drop. Exports, however, fell as well, reaching $39.3 billion in May, 1.6% lower than in the preceding month, and the fastest since July 2012. Minerals and metal ores tumbled 15.0%, adding to signs that mining sector will not be able to boost the economy in the future.
Data also showed that the imports to the U.S., the world's largest economy declined by 2% to $25.7 billion, while shipments fell 1.6%. It has led to an increase in trade surplus with the major trade partner to $3.5 billion in May, up from $3.4 billion a month earlier. In addition to that, analysts expect Canada to record deficits in the broader trade measure, also known as the current account, through 2015.
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