Statistics Canada announced that the country’s merchandise imports decreased 3.8% in January, while exports fell 1.7%.
As a result, Canada’s merchandise trade balance changed position for a second consecutive month, moving from a deficit of $863 million in December to a surplus of $496 million in January.
The Federal agency notes that total imports decreased to $61.8 billion in January, the lowest level since February 2022. Overall, 7 of the 11 product sections were down. On a year-over-year basis, imports were down 6.0% in January 2024.
Following a 9.8% increase in December, imports of consumer goods declined 7.1% in January, erasing a large part of the gain made in the previous month.
Total exports decreased for a third consecutive monthly decline. Decreases were observed in 8 of the 11 product sections. Exports were down 7.5% in January compared with the same month in 2023, when exports reached a peak. Exports of metal and non-metallic mineral products (-6.2%) posted the largest decline in January 2024.
Imports from the United States decreased 1.7% in January, partly because of lower imports of motor vehicles and parts and pharmaceutical products. Meanwhile, exports to that country fell 1.0%, primarily because of lower exports of aircraft. As a result, Canada’s merchandise trade surplus with the United States widened slightly from $8.6 billion in December to $8.8 billion in January.
Imports from countries other than the United States were down 7.3% in January, partly because of lower imports from China (various products) and South Korea (passenger cars and light trucks). Exports to countries other than the United States (-4.2%) also fell, in large part because of lower exports to Italy (aircraft and pharmaceutical products), China (coal), Norway (nickel), and Germany (crude oil).
Canada’s trade deficit with countries other than the United States narrowed from $9.4 billion in December to $8.3 billion in January.