Ottawa, Canada (4E) – Canada’s trade deficit surprisingly widened for the second straight month in August due record rise in imports, outstripping shipments to the U.S. that climbed to its highest level since the end of 2011.
The shortfall in the country’s trade rose to 1.31bn Canadian dollars ($1.27bn) in August from a revised 1.19bn Canadian dollars in the previous month, which was initially estimated at 931mn Canadian dollars, according to a Statistics Canada report released Tuesday.
The deficit surpassed all 20 forecasts by economist surveyed by Bloomberg News, who have a median estimate of 700mn Canadian dollars.
Exports climbed 1.8 percent to 39.8bn Canadian dollars in August. Imports advanced 2.1 percent to 41.1bn Canadian dollars in August, including a 6.4 percent gain in passenger cars and light trucks as well as a 12.5 percent increase in energy products.
Canada’s trade surplus with its biggest trading partner, the U.S., increased to 3.99bn Canadian dollars, the highest in eight months, from 3.44bn Canadian dollars. Shipments to the U.S. climbed 1.9 percent to 30.12bn Canadian dollars, the highest level since December 2011, boosted by exports of crude oil and bitumen, while imports from the U.S. slightly gained 0.1 percent to 26.13bn Canadian dollars.