OTTAWA: Canada’s trade deficit has narrowed to $135 million as its exports hit a record high. The energy and consumer sectors helped the Canadian exports rise to a new high in March, and the trade deficit to drop to a new low, according to Statistics Canada. A $800m deficit was expected by the economists for the period, according to Thomson Reuters. Gains in eight of the 11 sectors in March helped exports rise 3.8 percent to $47 billion. The volumes gain of 2.5 percent and prices increase of 1.3 percent contributed to the rise. A 7 percent increase in energy sector helped take the export figure to $8.7 billion. On the other hand, consumer goods exports also gained ground, climbing 6.8 percent to $6.1 billion.
Statistics Canada said higher imports of metal and non-metallic mineral products, industrial machinery, equipment and parts, and motor vehicles and part were the main contributors. Metal and non-metallic mineral product imports grew 10.4 percent to $4 billion. Meanwhile, unwrought precious metals alloys rose to 61.1 percent. “This is a solid report,” said Benjamin Reitzes of Canadian rates and macro strategist at BMO Capital Markets. CIBC economist Nick Exarhos told the Toronto Star, “Combined with a continued creep higher in crude prices, look for energy to continue being a catalyst in supporting Canadian exports.”
