Dec. Canada Exports/Imports Up

Canada’s merchandise exports and imports both advanced in December on the strength of automotive products as Canada’s trade deficit widened. Statistics Canada said exports rose 1.7% and imports increased 1.8%, Manufacturing.Net reports.

As a result, Canada’s trade deficit with the world widened to $246 million in December from $201 million in November. Exports grew to $32.2 billion in December from $31.7 billion in November, their fourth straight monthly gain. Statistics Canada attributed the growth to a 2.1% increase in volumes, while prices fell 0.4%.

Automotive products were responsible for nearly two-thirds of the growth, followed by machinery and equipment and energy products, while industrial goods and materials exports declined in December.

The export value for December 2009 remained 8% below the value recorded in December 2008. Imports increased to $32.4 billion in December from $31.9 billion in November, due to a 1.1% rise in volume combined with 0.7% price increase.

Automotive products led the gain for the second straight month, representing more than half the growth in December’s imports. Industrial goods and materials and energy products also increased, while machinery and equipment decreased during the month. Overall, imports remained 9.1% below those of December 2008.