Canada’s trade gap unchanged with exports struggling to rebound

Canada’s trade deficit came in wider than expected in October as exports remain well below pre-pandemic levels.

The deficit was C$3.76 billion ($2.9 billion), from a revised C$3.82 billion in September, Statistics Canada reported Friday in Ottawa. Economists had forecast a deficit of C$3.1 billion, the median of 12 forecasts in a Bloomberg survey.

Both imports and exports increased as trade globally continues to normalize from the spring shutdowns, but Canadian shipments of goods abroad have underperformed. While imports have fully recouped their pre-pandemic losses, exports are still just 96% February levels.

In October, exports were up 2.2%, versus a 1.9% gain for imports.