Trade Deficit Widened in June

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August 20, 2010

Photo by Jorge Franganillo

Some bad economic news is here! The trade deficit of Canada has, quite surprisingly, widened in June, Statistics Canada has reported this last week. The level of deficit in June was $1.13 billion, increasing from $695 million in May. The reason for the widening gap is a very significant fall in exports during the month – actually, the sharpest one in 10 months.

The fall in exports of industrial goods was the most noteworthy and it made up for about two thirds of the overall decrease in exports. Energy, as well as automotive products saw the next largest fall. There also was a decline in imports. While not a massive drop, just 1.2 percent, it was caused, for the main part, by lack of imports of energy products.

I guess the economic recovery is not continuing to do well and is currently worse than expected. Even the pessimists who predicted declines in the economy are surprised by the results.