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December 2008
Exports and imports dropped in December amid a global economic downturn with exports falling at a faster pace than imports. This resulted in a trade deficit of $458 million compared to a trade surplus of $1.2 billion in November. This was the first trade deficit registered since March 1976.
Exports dropped 9.7% to $35.3 billion as both prices and volumes declined. This marked the largest month-over-month percentage decrease since October 1982. The declines were widespread across most sectors. Overall, exports have been trending downwards since July 2008.
Imports also declined, falling 5.7% to $35.8 billion. The decrease, reflecting mostly volume reductions, was largely attributable to machinery and equipment; automotive products and industrial goods and materials.
Although exports and imports have been declining in recent months, trade in agricultural and fishing products as well as machinery and equipment have generally been on the rise through out 2008.
Exports to the United States dropped 10.0% to $25.9 billion. The slump in exports, led by crude petroleum, outpaced an 8.4% fall in imports. As a result, Canada's trade balance with the United States fell from $4.6 billion in November to $3.8 billion in December, its lowest level since December 1998.
Canada's trade deficit with countries other than the United States grew to $4.2 billion in December from $3.4 billion in November, as exports diminished 9.0% while imports fell 1.0%.
Note to readers
Merchandise trade is one component of the current account of Canada's balance of payments, which also includes trade in services, investment income and transfers.
International merchandise trade data by country are available on both a balance of payments and a customs basis for the United States, Japan and the United Kingdom. Trade data for all other individual countries are available on a customs basis only. Balance of payments data are derived from customs data by making adjustments for characteristics such as valuation, coverage, timing and residency. These adjustments are made to conform to the concepts and definitions of the Canadian System of National Accounts.
Constant dollars referred to in the text are calculated using the Laspeyres volume formula which is current dollars divided by Paasche indexes.
Revisions
In general, merchandise trade data are revised on an ongoing basis for each month of the current year. Current year revisions are reflected in both the customs and balance of payments based data. Revisions to customs based data for the previous year are released on a quarterly basis. Annual revisions to 2005, 2006 and 2007 data, on a customs basis, are released today.
Factors influencing revisions include late receipt of import and export documentation, incorrect information on customs forms, replacement of estimates with actual figures, changes in classification of merchandise based on more current information, and changes to seasonal adjustment factors.
Revised data are available in the appropriate CANSIM tables.
