International Merchandise Trade (Apr.)

The merchandise trade deficit narrowed to a six-month low of $1.9bn in April, from $3.9bn, as imports fell back to more normal levels and exports ticked higher. The rise in exports was led by gains in energy and precious metals, however, so there is still only limited evidence that Canada’s exporters are finally benefitting from the strength of global economic activity. Nevertheless, after acting as a drag on the economy for the past 12 months, it looks like external trade will provide a small boost to second-quarter GDP growth.