Canada's trade deficit narrowed in April as energy exports rebounded and foreign sales of industrial machinery and equipment rose dramatically, official figures showed Friday. Statistics Canada said the trade shortfall was Can$2.9 billion (US $2.2 billion), down from Can$3.2 billion in March. Analysts had expected a slightly smaller deficit.
Exports increased 1.5 percent in the month to Can$41.8 billion, while imports rose 0.9 percent to Can$44.7 billion despite declines in six out of 11 categories. Bilateral trade rose with the United States, Canada's neighbor and largest trading partner. Exports to Mexico, a partner in the North American trade pact, also increased.
But imports from Germany and South Korea fell, as did exports to Britain and Spain. Exports of Canadian energy products rose in April for a second consecutive month as prices started to rebound after the 2014 rout. Natural gas exports led the gain in this segment, up 43 percent. Crude oil exports were also up. Exports of industrial machinery, equipment and parts, meanwhile, posted their strongest gain in 15 years, up 10.5 percent.
Exports of unwrought precious metals and precious metal alloys also increased. But exports of aircraft and other transportation equipment and parts decreased in the month.
Overall higher imports were led by a spike in foreign sales of aircraft, ships, locomotives, railway rolling and rapid transit equipment, as well as crude oil. Partially offsetting these gains were lower imports of industrial machinery and electrical equipment. Imports of communications and audio and video equipment also declined.