OTTAWA (Reuters) – Canada’s trade deficit increased to C$3.73 billion ($2.77 billion) in June from May, largest in nearly 3 years, as exports dropped 2.2%, outpacing a 0.5% decline in imports, Statistics Canada data showed on Tuesday.
Analysts in a Reuters poll had forecast a trade deficit of C$2.90 billion. Statscan upwardly revised May’s deficit to C$2.68 billion from C$3.44 billion reported initially.
Canada’s trade deficit with countries other than the United States, its biggest trading partner, increased to an all-time high in June as month-over-month exports declined 5.5%, while imports were down marginally.
There were broad declines in exports in June, with metal and non-metallic mineral products being the largest drag.
Total exports fell 1.1% by volume, marking the 11th monthly drop in export prices in the past 12 months.
Total imports declined 0.5%, largely due to lower imports of energy products as well as pharmaceuticals. Imports of unwrought gold jumped, and nearly offset declines in other product categories. By volume, imports were up 0.9%.
Statscan also warned that impact from a 13-day strike by dock works in western Canada is likely to seen in July data to be released next month.
($1 = 1.3453 Canadian dollars)
(Reporting by Ismail Shakil in Ottawa; Editing by Dale Smith)
