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Canada’s trade deficit grows in December

Thursday, 05 February 2015 6:34 PM [ Last Update: Thursday, 05 February 2015 6:35 PM ]

A container ship unloads at a terminal in the port of Vancouver, Canada. (File photo)

Official statistics show Canada’s trade deficit widened sharply to CAD 649 million in December 2014 amid tumbling oil prices.

December’s merchandise trade shortfall followed November’s deficit that was revised to CAD 335 million from an initial CAD 644 million, according to figures released on Thursday by Statistics Canada, the country’s national statistical agency.

Canada’s trade deficit expanded as merchandise imports increased by 2.3 percent in December, while exports rose only by 1.5 percent as a result of falling oil prices, the agency added.

“This report helps to allay the doom and gloom that has surrounded the Canadian economy in recent weeks...,” said Mazen Issa, a strategist with TD Securities, a leading Canadian investment bank.

Meanwhile, Statistics Canada also found that the value of 2014 imports increased by 7.6 percent from 2013, while exports surged by 10.3 percent.

The organization further said that the North American country posted a CAD 5.17-billion trade surplus in 2014, compared with a CAD 7.22-billion deficit in 2013.

Oil prices have plunged about 60 percent since June last year. Experts blame a supply glut driven by US shale projects as well as production by the Organization of the Petroleum Exporting Countries (OPEC) non-member producers for the record price plunge.

SSM/MKA/SS

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