Canada Dec. trade deficit narrows to C$160 million on lower energy exports

Canada Dec. trade deficit narrows to C$160 million on lower energy exports

OTTAWA (Reuters) – Canada posted a C$160 million ($119.1 million) trade deficit in December, as exports fell largely on energy products while imports were driven down mainly by consumer goods, Statistics Canada said on Tuesday.

The deficit was better than analysts expectation of a C$500 million deficit and smaller than a revised C$219 million deficit in November.

Total exports fell 1.2% in December, dragged down by energy products, which fell for the third straight month in December to their lowest level in 2022, Statscan said. By volume, total exports were up 0.9%.

The decline in energy products was partly offset by exports of motor vehicles and parts, which rose 21% to C$7.5 billion, its highest level since September 2020.

Total imports were down 1.3%, largely attributable to declines in the consumer goods and motor vehicles and parts product sections.

Lower pharmaceutical products shipments contributed the most to consumer goods third straight monthly decline, partly due to fewer imports of COVID-19 treatments and vaccines.

The Canadian dollar was trading at 1.3441 to the greenback, or 74.40 U.S. cents.

($1 = 1.3436 Canadian dollars)