The report also showed the trade gap with China, the world’s second-biggest economy, widened to $30.3 billion from $29.8 billion.
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Exports of foods, feeds, and beverages jumped to a record high due largely to a substantial increase in exports of soybeans.
Non-energy products drove the growth in exports, with healthy gains seen in the motor vehicles and parts, metal and non-metallic mineral products and transportation equipment sectors.
“The massive surge in soybean exports likely will reverse”, said Ian Shepherdson, chief economist at Pantheon Macroeconomics. They are looking for a declining trade deficit to support growth in the current quarter.
Canada’s trade deficit with the rest of the world narrowed to $2.5 billion in July as Canada shipped more goods to the USA and overseas, Statistics Canada reported Friday.
The surplus shrank to C$2.49 billion ($1.9 billion), versus the C$3.3 billion median of 17 forecasts in a Bloomberg News economist survey.
Canadian exports increased 3.4 per cent to $42.7 billion in July as volumes gained 3.7 per cent, but prices fell 0.3 per cent. It came despite an increase in the dollar’s value against other currencies in late June following the Brexit vote, a rise that lasted through most of July. American exporters have been struggling with a stronger dollar, which makes US goods more expensive on overseas markets, and global economic weakness.
America’s deficit with the European Union fell 4.4 percent to $12.3 billion while the deficit with Mexico was down 11.7 percent to $4.7 billion. The politically sensitive U.S. In his view, third-quarter GDP could grow at an annualized rate of 3% or higher. Exports decreased $63.7 billion or 4.8 percent. The deficit was roughly the same, down just 0.2% over the period.
Energy exports declined 0.8% on the month with a 28% annual decline and there should be scope for a recovery in energy exports over the next few months, which will underpin the wider trade balance.
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Both exports and imports of capital goods fell.
