Trade deficit narrowed in May as exports rose and imports fell

Photo: The Canadian Press

A freight train rail yard is pictured near Pitt Meadows, B.C.

Statistics Canada says the country's merchandise trade deficit narrowed in May as exports and oil prices climbed while imports fell.

The agency says the deficit contracted to $677 million in May compared with a deficit of $4.3 billion in April when exports and imports both plunged due to the COVID-19 pandemic.

Total exports rose 6.7 per cent in May to reach $34.6 billion, however Statistics Canada noted that they were down 34.1 per cent compared with a year ago.

Meanwhile, imports fell 3.9 per cent in May to $35.3 billion, despite the partial reopening of the economy.

Imports were down by nearly a third compared with year ago.

In volume terms, exports were up 3.8 per cent in May, while imports fell 6.7 per cent.