Canada posts C$41 million Nov trade deficit on lower energy exports

OTTAWA (Reuters) – Canada posted a trade deficit of C$41 million ($30.32 million) in November, driven by lower exports of energy products, with both imports and exports affected by the appreciation of the Canadian dollar, Statistics Canada said on Thursday.

Analysts had forecast Canada to post a C$610 million surplus.

Exports were down 2.3%, largely on broad declines in energy products as well as consumer goods.

Exports of energy products decreased for the fifth straight month. Lower exports of coal to Asian countries and cheaper natural gas in November contributed to the decline, Statistics Canada said. By volume, exports were down 1.4% in November.

Imports fell 2.1%, largely on consumer goods. Pharmaceutical and medicinal products decreased the most, including treatment and vaccines for COVID-19, Statscan said. Imports were down 0.7% in volume terms.

A large share of Canada’s trade is done in U.S. dollars, which means converted values are lower when the Canadian dollar appreciates against the U.S. dollar, like it did in November.

The Canadian dollar was trading at 1.3522 to the greenback, or 73.95 U.S. cents.

(Reporting by Ismail Shakil and Dale Smith in Ottawa; Editing by Nick Macfie)