By ANDREW MAYEDA
Canadas merchandise trade balance swung to an
unexpected deficit in April as energy exports declined amid
The deficit of C$638 million ($584 million) followed a
revised surplus of C$766 million in March, Statistics Canada
said on Wednesday in Ottawa.
Economists surveyed by Bloomberg forecast a C$200
million surplus, based on the median of 19 forecasts.
The Bank of Canada will probably keep the benchmark interest
rate at 1%. Policy
makers have said an
increase in exports and business investment are needed to
bring the economy to full output.
Exports dropped 1.8% to C$42.8 billion in April, led by an
11% decline in energy exports to C$10.7 billion. Part of the
drop was due to refineries closing for maintenance
, Statistics Canada
Imports rose 1.4% to a record C$43.5 billion, led by consumer
goods, according to the agency.
The volume of exports declined 0.8% and import volumes rose
1.9%, Statistics Canada said. Volume figures adjust for price
changes and can be a better indicator of how trade
contributes to economic growth.
The surplus with the US narrowed to C$4.3 billion in April
from C$4.4 billion a month earlier. The deficit with
countries other than the US widened to C$4.9 billion, as
shipments to the Europe
an Union dropped 23%.
Exports make up about one-third of Canadas economy,
with about three quarters going to the US.