Canada's Trade Challenges: Surging Deficit and Shifting Exports

Canada's trade deficit rose to C$1.26 billion in September, marking the seventh month of deficits. The ongoing digital transition at the Canada Border Services Agency has led to more estimations in data. Exports, especially of mineral products, declined due to low metal prices, exacerbating the deficit.

Canada's trade deficit hit C$1.26 billion in September, driven by a decline in exports that outpaced a drop in imports, according to data released on Tuesday. This marks the seventh consecutive month of deficits, as revealed by Statistics Canada.

With the Canada Border Services Agency entering a digital transition, increased estimation in trade data has been observed. Analysts had forecasted a deficit of C$800 million, while August's deficit was adjusted from C$1.1 billion to C$1.47 billion, reflecting more precise evaluations.

Exports faced a 0.1% dip, significantly impacted by a 5.4% decrease in metal and mineral shipments, notably unwrought gold, which plummeted by 15.4%. This decline was fueled by low metal and energy prices, leading to a 1.5% reduction in export goods prices despite a 1.4% rise in volume.

(With inputs from agencies.)