Canada's trade deficit widens

Imports increased 1.8 per cent in December, outpacing a 1.7 per cent rise in exports and widening Canada's trade deficit with other nations to $246 million.

Canada's merchandise trade deficit sat at $201 million in November. That figure was revised down from the originally reported level of $344 million.

Automotive products were a factor in the increases in exports and imports, Statistics Canada reported Wednesday.   

Exports grew to $32.2 billion in December from $31.7 billion in November. Except for August, exports have risen every month since May 2009. The gain was attributed to a 2.1 per cent increase in volumes, as prices actually fell 0.4 per cent.  

Automotive products were responsible for nearly two-thirds of the growth, followed by machinery and equipment and energy products, while industrial goods and materials exports declined in December.

In all, exports in December 2009 were eight per cent below the level they were at in December 2008.

Imports increased to $32.4 billion in December from $31.9 billion in November, due to a 1.1 per cent rise in volume combined with 0.7 per cent price increase.

Trade surplus with U.S. grows

Automotive products led the gain for the second straight month, representing more than half the growth in December's imports. Industrial goods and materials and energy products also increased, while machinery and equipment decreased during the month.

Overall, imports remained 9.1 per cent below those of December 2008.

Led by passenger cars, exports to the United States rose 2.9 per cent to $24.1 billion, surpassing the two per cent gain in imports. As a result, Canada's trade surplus with the United States grew to $3.7 billion in December from $3.4 billion in November.

Canada's trade deficit with countries other than the United States widened to $3.9 billion in December from $3.6 billion in November.