Canadian goods trade deficit likely narrowed in July on significant rise in motor vehicle exports
Canada’s international merchandise trade data for the month of July is set to release tomorrow. According to a TD Economics research report, the international goods trade deficit is likely to have narrowed to CAD 2 billion in the month, aided by significant rise in motor vehicle exports.
Auto production returned to pre-COVID levels in June and held roughly stable through the next month, in spite of seasonal headwinds that have seen July production decline 35 percent on average in the past five years. Forestry products are also expected to have provided another source of strength while stable PADD II imports imply little change in real energy exports.
“Export strength will be partially offset by a more moderate rise for imports following the 22 percent surge last month”, added TD Economics.