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

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

West Coast General Hospital in Port Alberni received some good news about an expansion to its emergency department on Jan. 15, 2021. (SUSAN QUINN/ Alberni Valley News)
B.C. health ministry commits $6.25M to hospital expansion in Port Alberni

Plans for larger emergency department have been on hold since 2015

A Tla-o-qui-aht First Nation guardian took this photo of dozens of vehicles parked along a forest service road in the Kennedy watershed. (Submitted photo)
Alberni-Clayoquot Regional District looks at enforcement of illegal camping

ACRD currently does not have an existing bylaw service to tackle the issue

Ucluelet local Geoff Johnson snapped this photo of a Risso’s dolphin that washed up near Chesterman Beach in Tofino on Wednesday, Jan. 13. (Geoff Johnson photo)
Washed up Risso’s dolphin offers glimpse into “whole other world” near Tofino

“It’s like a UFO crash landed and you can come look at it.”

(B.C. government)
POLL QUESTION: Would you report a neighbour in breach of COVID-19 regulations?

Would you report a neighbour in breach of COVID-19 regulations? READ MORE:… Continue reading

A scene from “Canada and the Gulf War: In their own words,” a video by The Memory Project, a program of Historica Canada, is shown in this undated illustration. THE CANADIAN PRESS/HO - Historica Canada
New video marks Canada’s contributions to first Gulf War on 30th anniversary

Veterans Affairs Canada says around 4,500 Canadian military personnel served during the war

Williams Lake physician Dr. Ivan Scrooby and medical graduate student Vionarica Gusti hold up the COSMIC Bubble Helmet. Both are part of the non-profit organization COSMIC Medical which has come together to develop devices for treating patients with COVID-19. (Monica Lamb-Yorski photo - Williams Lake Tribune)
Group of B.C. doctors, engineers developing ‘bubble helmet’ for COVID-19 patients

The helmet could support several patients at once, says the group

A 17-year-old snowmobiler used his backcountry survival sense in preparation to spend the night on the mountain near 100 Mile House Saturday, Jan. 16, 2021 after getting lost. (South Cariboo Search and Rescue Facebook photo)
Teen praised for backcountry survival skills after getting lost in B.C.’s Cariboo mountains

“This young man did everything right after things went wrong.”

Conservative Leader Erin O’Toole holds a press conference on Parliament Hill, in Ottawa on December 10, 2020. THE CANADIAN PRESS/Sean Kilpatrick
No place for ‘far right’ in Conservative Party, Erin O’Toole says

O’Toole condemned the Capitol attack as ‘horrifying’ and sought to distance himself and the Tories from Trumpism

A passer by walks in High Park, in Toronto, Thursday, Jan. 14, 2021. This workweek will kick off with what’s fabled to be the most depressing day of the year, during one of the darkest eras in recent history. THE CANADIAN PRESS/Chris Young
‘Blue Monday’ getting you down? Exercise may be the cure, say experts

Many jurisdictions are tightening restrictions to curb soaring COVID-19 case counts

A health-care worker prepares a dose of the Pfizer-BioNTech COVID-19 vaccine at a UHN COVID-19 vaccine clinic in Toronto on Thursday, January 7, 2021. THE CANADIAN PRESS/Nathan Denette
COVID-19: Provinces work on revised plans as Pfizer-BioNTech shipments to slow down

Anita Anand said she understands and shares Canadians’ concerns about the drug company’s decision

Tourists take photographs outside the British Columbia Legislature in Victoria, B.C., on Friday August 26, 2011. A coalition of British Columbia tourism industry groups is urging the provincial government to not pursue plans to ban domestic travel to fight the spread of COVID-19. THE CANADIAN PRESS/Darryl Dyck
B.C. travel ban will harm struggling tourism sector, says industry coalition

B.C. government would have to show evidence a travel ban is necessary

(Phil McLachlan - Capital News)
‘Targeted’ shooting in Coquitlam leaves woman in hospital

The woman suffered non-life threatening injuries in what police believe to be a targeted shooting Saturday morning

Everett Bumstead (centre) and his crew share a picture from a tree planting location in Sayward on Vancouver Island from when they were filming for ‘One Million Trees’ last year. Photo courtesy, Everett Bumstead.
The tree-planting life on Vancouver Island featured in new documentary

Everett Bumstead brings forth the technicalities, psychology and politics of the tree planting industry in his movie

Most Read