OTTAWA — Canada posted a merchandise trade deficit of $2.3 billion in March, its largest deficit since June last year, Statistics Canada said Thursday.
The result followed a surplus of $476 million in February, which was revised down from an initial reading released last month that indicated a surplus of $1.4 billion for the month.
CIBC senior economist Katherine Judge said the March figure stood in "stark contrast" to expectations for a surplus of $1.2 billion.
"The downside surprise in the March trade balance, combined with sizable downward revisions to the February data, now suggest that net trade will act as a modest drag on growth in the first quarter," Judge wrote in a report.
Statistics Canada said total exports fell 5.3 per cent in March to $62.6 billion as exports of unwrought gold, which surged to a record high in February, came back down.
It noted that a large number of high-value shipments of unwrought gold to the United Kingdom and Switzerland were seen in February and did not repeat in March.
Exports of metal and non-metallic mineral products decreased 17.4 per cent in March as exports of unwrought gold, silver, and platinum group metals and their alloys fell 32.5 per cent.
Energy product exports also fell 4.9 per cent, due in part to lower exports of crude oil and bitumen, coinciding with unplanned shutdowns at refineries in the U.S. Midwest.
Exports of motor vehicles and parts lost 6.3 per cent in March as several manufacturing plants began retooling work on assembly lines to produce new vehicle models.
Meanwhile, total imports fell 1.2 per cent to $64.8 billion as imports of electronic and electrical equipment and parts fell 8.1 per cent.
Imports of metal ores and non-metallic minerals fell 29.2 per cent in March, their lowest level since September 2021.
In volume terms, total exports fell 4.7 per cent, while total imports decreased 1.2 per cent.
In a separate release, Statistics Canada says the country's international trade in services deficit widened to $1.0 billion in March compared with $900 million in February as exports of services fell 2.0 per cent to $16.9 billion and imports of services dropped 1.4 per cent to $17.9 billion.
When Canada's international trade in goods and services are combined, Statistics Canada said the country's total trade deficit with the world was $3.3 billion in March compared with $431 million in February.
This report by The Canadian Press was first published May 2, 2024.
The Canadian Press
