Trade deficit widens in August

Canada posted a trade deficit in August of 2.53 billion Canadian dollars ($1.94 billion), Statistics Canada said Tuesday. August imports were $233.4 billion, $2.8 billion more than July imports.

The gap reflected a drop-off in… It also casts doubt on the central bank’s view that non-energy production would trigger a recovery. The gap with the European Union rose 17% to $14.5 billion.

The result fell well outside forecasts, with economists surveyed by Bloomberg expecting the trade deficit would narrow slightly to $2.4bn in the month. Meanwhile, imports rose 0.2% to C$46.49 billion, as prices rose 0.3% but volumes fell 0.1%.

The value of exports in seasonally adjusted terms fell $130 million and was dragged down by a 19 per cent – or $316 million – fall in gold exports.

Other indicators suggest the economy suggest a recovery is underway, with gross domestic product rising in June and July and employment climbing by 193,300 in the 12 months through August.