[published_date]
Canada’s merchandise trade deficit narrowed to $5.9 billion in May, according to data from Statistics Canada, after hitting a record high in April.
The country’s exports rose by 1.1 per cent, after falling steeply by 11 per cent the month prior. It also marked the first increase in exports in four months.
Overall, imports were down for the third month in a row, falling by 1.6 per cent, according to Statistics Canada.
Canada’s exports to the United States dipped by 0.9 per cent in May, while the amount of American-made products the country imported also fell by 1.2 per cent.
In April, Canada’s trade deficit ballooned to more than $7 billion, from $2.3 billion in March.
While the figure is an improvement from last month, the trade deficit remains elevated and the jump in April will continue to have an impact, according to CIBC economist Katherine Judge.
“The sizable decline in exports in April means that net trade will be a drag on growth over the second quarter as a whole and will remain under pressure until trade negotiations progress,” Judge said.
