Canada's Trade Deficit Swells as Exports Slide

Canada's international trade deficit surged to C$2.2 billion in November as merchandise exports, particularly metals, dropped significantly. The U.S. government shutdown delayed data collection. Exports to the U.S. decreased marginally, while imports from the U.S. fell sharply, enhancing Canada's trade surplus with its neighboring country.

In a significant development, Canada's trade deficit soared to C$2.2 billion in November, a steep climb from the previous month's revised deficit of C$395 million, according to Statistics Canada figures released on Thursday.

The drop was largely driven by a substantial 24.4% decrease in metal and non-metallic product exports, particularly unwrought gold bound for the U.K., U.S., and Hong Kong. Exports of motor vehicles and parts also plunged by 11.6%, marking the largest fall in three years.

Meanwhile, the trade deficit was exacerbated by the U.S. government shutdown, which delayed crucial export data. Imports from the U.S. shrank 5.4%, while exports fell by a smaller margin, boosting Canada's trade surplus with its southern neighbor to C$6.6 billion.

(With inputs from agencies.)