Canada’s merchandise trade deficit narrowed in November, shrinking to CAD -323 million from October’s revised CAD -544 million, outperforming market expectations of a CAD -800 million shortfall. This improvement was driven by a 2.2% mom rise in exports, complemented by a 1.8% mom increase in imports.
Exports saw gains across nine of the 11 product categories, with higher prices partially contributing to the increase. Adjusted for inflation, real export volumes still advanced by 0.5% mom.
Canadian Dollar’s depreciation against the US Dollar over October and November played a notable role in boosting the relative value of cross-border trade.
Over the two months, Canadian exports grew 3.9%, while imports increased 2.2%. In US Dollar terms, however, exports rose by just 0.8%, and imports declined by 1.0%.
