RTTNews - Canada's trade deficit with the world widened to $1.4 billion in May from a revised $389 million in April, according to data released Friday by Statistics Canada.
A deficit of around $600 million was expected, compared with an originally reported $200 million deficit in April.
Canada's merchandise exports fell 6.9% to $28.4 billion in May, as volumes declined 4.1% and prices decreased 2.9%. Imports were down 3.5% to $29.8 billion due to a 4.9% reduction in prices, while volumes rose 1.5%. . The Canadian dollar appreciated 6.4% against the US dollar in May.
Exports and imports declined for the third consecutive month in May and have been trending downwards since July 2008. The declines observed in March, April and May 2009 were less pronounced than those at the end of 2008 and January 2009.
Since July 2008, export volumes have fallen by 23.7% and prices have declined by 16.2%. In comparison, import volumes have fallen by 24.5% while prices have edged down 0.1% during the same period.
Although the declines were widespread across all sectors in May, the continued weakness in global demand for energy products and the restructuring of the automotive industry accounted for more than half of the decrease in exports and imports.
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