Canada's trade deficit shrinks to $4.9 billion in July

Canada's trade deficit narrowed in July as overall exports rose, especially driven by outbound shipments of crude oil and passenger cars to its biggest trading partner the United States, Statistics Canada said.

Its merchandise trade deficit, or deficit from trading in goods, in July was at $4.94 billion, smaller than last month's $5.98 billion, but much higher than the same period last year, according to Statistics Canada's data.

Overall exports rose by 0.9% to $61.86 billion in July while imports slowed 0.7% to $66.8 billion.

Analysts polled by Reuters had forecast the trade deficit for July at $4.75 billion.

Exports of energy products posted an increase in July of 4.2% and exports of motor vehicles and parts increased 6.6%, it said, adding that lower exports of metal and non-metallic mineral products partially offset the overall increase in exports in July.

WAM