Canada’s trade deficit stays elevated on import rebound

Canada’s trade gap was little changed in September at elevated levels as imports have rebounded more quickly than exports since the onset of the pandemic.

The deficit was C$3.25 billion ($2.47 billion), from a revised C$3.21 billion in August, Statistics Canada reported Wednesday in Ottawa. Economists had forecast a deficit of C$2.35 billion, the median of 14 estimates in a Bloomberg survey.

Both exports and imports rose 1.5% in September, but since the pandemic started, Canada has brought in more goods and services than it has shipped out.

Imports are at 98% of pre-pandemic levels, versus 94% for exports. Machinery and equipment imports rose 6.7% in September.

Combined, exports and imports have increased 37% since falling to a decade-low in April, leaving them at 96% of pre-pandemic levels.

The gain in exports was led by forestry products, up 10% in September and 16% from February, the agency said. Aircraft exports climbed 13% in the month.