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Economic news
06.05.2025

Canada’s trade deficit unexpectedly narrows in March

Statistics Canada announced on Tuesday that Canada recorded a trade deficit of CAD0.51 billion in March, compared to a revised gap of CAD1.41 billion (from CAD1.52 billion) in February. 

Economists had expected a shortfall of CAD1.60 billion.

According to the report, Canada’s exports slipped by 0.2 per cent m-o-m to CAD69.90 billion in March, as 6 of 11 product sections posted decreases in exports, led by aircraft and other transportation equipment and parts (-10.2 per cent m-o-m), consumer goods (-4.2 per cent m-o-m), metal and non-metallic mineral products (-3.2 per cent m-o-m) and energy products (-2.2 per cent m-o-m). Partially offsetting these declines were higher exports of motor vehicles and parts (+7.7 per cent m-o-m), forestry products and building and packaging materials (+3.5 per cent m-o-m), and farm, fishing and intermediate food products (+3.1 per cent m-o-m).

Meanwhile, imports fell by 1.5 per cent m-o-m to CAD70.40 billion in March. This marked the first monthly drop in imports since September 2024, which was due to declines in 4 of 11 product sections, including energy products (-18.8 per cent m-o-m), metal and non-metallic mineral products (-15.8 per cent m-o-m), metal ores and non-metallic minerals (-5.3 per cent m-o-m), and forestry products and building and packaging materials (-0.2 per cent m-o-m).

For the first quarter of 2025, Canada recorded a trade surplus of CAD1.2 billion compared to a gap of CAD0.5 billion in the fourth quarter of 2024. The country’s exports climbed 6.0 per cent in the first quarter, hitting a record high of CAD214.0 billion, and its imports jumped 5.2% to a record CAD212.8 billion.

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