Statistics Canada says trade deficit narrowed as both exports and imports fell

Statistics Canada office

Canada's merchandise trade deficit narrowed to $2.4 billion in August as both exports and imports edged lower following double-digit percentage gains in June and July.
     
``The recovery in trade came to halt in August, with a small dent what was looking like a v-shaped rebound,'' said Benjamin Reitzes, director, Canadian rates and macro strategist at BMO Capital Markets.
     
``Similar to most other economic data points, expect a slower rebound from here on in after the initial sharp improvement off the COVID-lockdown lows.''
     
Statistics Canada said Tuesday the result came after a deficit of $2.5 billion in July.
     
Economists on average had expected a deficit of $2 billion for August, according to financial data firm Refinitiv.
     
Total imports fell 1.2 per cent in August to $47.4 billion due to a 25.5 per cent drop in imports of aircraft and other transportation equipment and parts.