Energy product imports drive deficit in February: StatsCan

OTTAWA Canada’s merchandise trade deficit increased in February as imports of energy products swelled to their highest level since November 2014.

Statistics Canada said Thursday that the country posted a trade deficit of $2.7 billion in February compared with $1.9 billion in January. Economists had expected a deficit of $2 billion, according to Thomson Reuters.

“Trade got off to a rocky start this year, with February’s report confirming that net trade will likely weigh on growth in the first quarter,” TD Bank Dina Ignjatovic wrote in report. “Going forward, an acceleration in economic activity south of the border and a loonie hovering below 80 US cents should help to improve Canada’s trade picture. That said, NAFTA renegotiations and concerns of a global trade war ... leaves a cloud of uncertainty over the outlook.”

The increased trade deficit came as imports rose 1.9 per cent to $48.6 billion. Imports of energy products climbed 15.4 per cent to $3.4 billion in February as imports of crude oil and crude bitumen gained 15.4 per cent. Imports of refined petroleum energy products rose 24.1 per cent.

Exports grew 0.4 per cent to $45.9 billion as exports of motor vehicles and parts rose 5.0 per cent to $7.5 billion after plant closures in January. Exports of aircraft and other transportation equipment and parts gained 19.6 per cent to $1.7 billion.

Canada’s trade surplus with the U.S. shrunk to $2.6 billion in February compared with $2.9 billion in January as imports from the U.S. grew 3.3 per cent. Exports to the U.S. rose 1.9 per cent.

Canada’s trade deficit with other nations grew to $5.3 billion in February from $4.9 billion in January.