A worker installs parts on the production line at Chrysler’s plant, in Windsor, Ont., on January 18, 2011. Statistics Canada says the country’s merchandise trade deficit was $2.45 billion in July as both imports and exports continued to post strong gains, but remained below pre-pandemic levels. THE CANADIAN PRESS/Geoff Robins

Statistics Canada says merchandise trade deficit $2.45 billion in July

Motor vehicles and parts helped boost both imports and exports in July

Canada’s merchandise trade deficit was $2.45 billion in July as both imports and exports continued to post strong gains, but remained below pre-pandemic levels, Statistics Canada said Thursday.

The result compared with an updated deficit figure of $1.59 billion for June. The agency’s initial estimate for that month had been a deficit of $3.19 billion for the month.

Economists on average had expected a deficit of $2.5 billion for July, according to financial markets data firm Refinitiv.

“This report provides more evidence that Canada’s economy is recovering from the pandemic more quickly than we had originally expected,” Paul Ashworth, chief North America economist for Capital Economics, wrote in a brief note.

“Overall, while trade is still a little shy of pre-pandemic levels, the bulk of the losses during the lockdowns have already been reversed.”

Compared with February, the month before the pandemic brought the economy to a near halt, Statistics Canada said imports were down 4.1 per cent and exports were off 6.0 per cent.

The motor vehicles and parts product category helped boost both imports and exports in July as the auto industry adjusted to the impact of COVID-19 by ramping up production after shutting down earlier this year and going through a shorter-than-usual shutdown period in the month, Statistics Canada said.

Imports for July rose 12.7 per cent to $47.9 billion as imports of motor vehicles and parts increased 50.3 per cent, while exports rose 11.1 per cent to $45.4 billion as exports of motor vehicles and parts increased 37.0 per cent.

In volume terms, imports rose 11.2 per cent for July, while exports gained 8.6 per cent.

The overall increase in the trade deficit came as Canada’s trade surplus with the United States increased to $2.9 billion in July compared with $2.7 billion in June.

Meanwhile, Canada’s trade deficit with countries other than the United States increased to $5.3 billion in July compared with $4.3 billion in June.

Monthly service exports rose 0.6 per cent to $8.7 billion in July, while service imports edged up 0.2 per cent to $8.5 billion.

Statistics Canada said the trade deficit with the world for goods and services combined was $2.2 billion in July.

The Canadian Press

Like us on Facebook and follow us on Twitter.

Want to support local journalism? Make a donation here.

economy

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Just Posted

There has been COVID-19 exposures at two elementary schools in District 42. (Image courtesy CDC)
Interior Health reports 24 additional COVID-19 cases

This includes three school exposures in Kelowna

File photo
Man escapes truck incident unscathed

Submitted by Sgt. G.D. Simpson October 19 The Clearwater RCMP detachment received… Continue reading

Peter Milobar, BC Liberal candidate for the Kamloops-North Thompson has been elected for a second term. Milobar is pictured here with his wife Lianne. (Facebook photo)
Milobar takes Kamloops – North Thompson for a second term

Peter Milobar, the BC Liberal candidate for the Kamloops-North Thompson has been… Continue reading

NDP headquarters on election night, Oct. 24, 2020. (Katya Slepian/Black Press Media)
ELECTION 2020: Live blog from B.C. party headquarters

BC NDP projected to win majority government – but celebrations will look different this election

B.C. Green Party leader Sonia Furstenau outlines her party's climate action platform at Nanaimo's Vancouver Island Conference Centre earlier this month. (News Bulletin file photo)
Green leader Furstenau declared victor in her home riding on Vancouver Island

Cowichan Valley voters elect freshly minted party leader for her second term

Provincial health officer Dr. Bonnie Henry arrives for briefing on the COVID-19 situation, B.C. legislature, Oct. 26, 2020 (B.C. government)
B.C. records 217 more COVID-19 cases, mask use urged

Infection spike continues, 21 senior facilities affected

An elderly woman wearing a face mask to curb the spread of COVID-19 walks past an advertisement for a television series in Vancouver, B.C., Sunday, Aug. 30, 2020. THE CANADIAN PRESS/Darryl Dyck
B.C. has been under a COVID-19 state of emergency for more than half the year

Province has been under a state of emergency for 32 weeks – and counting

Los Angeles Dodgers celebrate after defeating the Tampa Bay Rays 3-1 to win the baseball World Series in Game 6 Tuesday, Oct. 27, 2020, in Arlington, Texas. (AP Photo/David J. Phillip)
L.A. Dodgers beat Rays 3-1 to win 1st World Series title since 1988

National League champs claim crown in six games

Seven-year-old Aaliyah Rosa was found dead in an apartment in Langley in July. (Langley Advance Times files)
Child’s body cold, no pulse: Off-duty cop testifies in Langley mother’s murder trial

The seven-year-old girl’s mother faces a first-degree murder charge

Tyrell Giroux was arrested by Williams Lake RCMP on Sunday, Oct. 25. (Facebook video screenshot)
Tsilhqot’in leaders call for suspension of officers seen in controversial Williams Lake arrest

Disturbing video demands an immediate, independent investigation, says TNG

Join Black Press Media and Do Some Good

Pay it Forward program supports local businesses in their community giving

People march during a climate strike in Montreal, Friday, Sept. 27, 2019. THE CANADIAN PRESS/Graham Hughes
Judge rejects 15 youths’ climate change lawsuit against Canadian government

Justice Michael Manson has granted the government’s motion to strike the plaintiffs’ claim

A woman walks through check in at WestJet at Pearson International airport during the COVID-19 pandemic in Toronto on Wednesday, Oct. 14, 2020. THE CANADIAN PRESS/Nathan Denette
Strong support for pre-flight COVID testing ahead of upcoming WestJet trial: YVR

Airport is partnering with UBC, which is helping choose the method of pre-flight testing

Prime Minister Justin Trudeau provides an update on the COVID pandemic during a press conference in Ottawa on Tuesday, Oct. 27, 2020. THE CANADIAN PRESS/Sean Kilpatrick
Trudeau says pandemic ‘really sucks,’ and that Christmas gatherings are up in the air

The prime minister encouraged residents to continue to follow the advice of local health authorities

Most Read