Canada's trade deficit narrows in December, share of exports to U.S. shrinks further

By Promit Mukherjee

OTTAWA, Feb 19 (Reuters) - Canada's planetary merchandise commercialized shortage narrowed successful December arsenic exports grew faster than imports, and its stock of exports to ‌the United Sates dropped to its lowest level connected grounds barring the COVID-19 ‌months, information showed connected Thursday.

Statistics Canada said the state posted a C$1.31 cardinal ($957 million) shortage successful December led ​by metals and non-metallic mineral exports. This was successful opposition to a revised C$2.59 cardinal shortage successful November.

Economists had expected astir C$2 cardinal shortage for December.

Total exports roseate 2.6% to C$65.63 billion, driven chiefly by metals and non-metallic mineral products shipments that grew by 18% successful December. ‌Exports of unwrought golden took ⁠the pb successful this class with a leap of implicit 37%, helped by higher prices.

However, excluding the metals and non-metallic category, the Canadian exports ⁠edged down 0.2%. In measurement terms, full exports were up 1.4%, the statistic bureau said.

Imports accrued 0.6% to C$66.93 billion, with six retired of 11 merchandise sections registering a rise. The summation ​was driven ​by imports of gold, rider vehicles and vigor ​products.

TRADE WITH THE U.S.

Exports to the ‌United States, Canada's largest trading partner, roseate 1.1%, accounting for conscionable implicit 67.4% of full exports, compared with 76.2% a twelvemonth ago.

This was the archetypal clip successful 3 months that outbound shipments to the southbound accrued successful percent terms, but the stock of exports to the U.S. shrunk to its lowest level successful since information postulation began, but 2 months ‌of pandemic successful 2020.

The stock of exports to the ​U.S. was 68.4% successful November and 67.5% successful October.

Imports ​from the U.S., however, roseate faster ​by 3.5%, narrowing Canada's merchandise commercialized surplus with its confederate neighbour ‌to C$5.7 billion, from C$6.5 cardinal successful ​November.

Meanwhile, exports to countries ​other than the U.S. continued their upward momentum, reaching an all-time precocious successful December. Exports of golden to the United Kingdom led astir of the gains.

Imports from countries ​other than the United States ‌fell 3% successful December and Canada's commercialized shortage with countries different than the ​United States narrowed to $7 cardinal successful December from $9 cardinal successful November, StatsCan ​said.

(Reporting by Promit Mukherjee; Editing by Dale Smith)