Falling exports keep Canada in trade deficit for third month

Canada recorded a goods trade deficit for the third straight month in May, the longest streak in nearly a year.

The country’s trade deficit widened to C$1.9 billion ($1.4 billion) that month from C$1.3 billion in April, Statistics Canada reported Wednesday in Ottawa. Economists had expected imports to exceed exports by C$1.3 billion in May, according to a Bloomberg survey.

Total exports fell 2.6% that month to the lowest level since July 2023, while imports decreased 1.6%. In volume terms, exports were down 1.7% and imports dropped 1.3%.

Unwrought gold and lower exports of crude oil as well as propane led the decline in exports. For imports, unwrought gold, passenger cars and light trucks and lower shipments of crude oil drove the decrease.

Gold exports have been particularly volatile for the past four months, Statistics Canada said.

The decline in exports was especially broad-based, with 8 of 11 product groups seeing decreases.