In November 2024, Canada’s trade deficit narrowed to CAD 0.32 billion from a revised CAD 0.54 billion in October, outperforming market expectations of a CAD 0.9 billion gap. Despite this improvement, the country has now recorded nine consecutive monthly deficits. The positive shift was driven by a rise in both imports and exports, reflecting a mixed but slightly optimistic outlook for the Canadian trade balance.

Imports Rise Driven by Forestry and Transportation Sectors

Imports grew by 1.8% in November, reaching CAD 66.4 billion. The increase was largely driven by a surge in forestry products and building materials, which rose by 5.9% to CAD 2.99 billion. Aircraft and other transportation equipment also saw significant growth, increasing by 5.7% to CAD 2.10 billion. Additionally, chemical products contributed to the rise in imports, growing by 4.3% to CAD 5.19 billion. This growth indicates strong demand across key sectors, particularly in construction and transportation.

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Exports Boosted by Metals, Minerals, and Consumer Goods

Exports rose by 2.2%, amounting to CAD 66.1 billion. The most significant contributors were metal ores and non-metallic minerals, which surged by 10.5% to CAD 2.28 billion. Exports of aircraft and other transportation equipment also grew by 6.7% to CAD 2.93 billion, reflecting robust activity in the transportation sector. Consumer goods exports increased by 4.4% to CAD 8.21 billion, showcasing strong demand for Canadian goods internationally.

Trade Balance with the US Improves, Non-US Deficit Widens

Canada’s trade surplus with the United States improved significantly in November, rising from CAD 6.6 billion to CAD 8.2 billion as exports to the US grew by 6.8%. However, the trade balance with non-US countries worsened. Exports to countries outside the US fell by 10.3%, widening the non-US trade deficit from CAD 7.2 billion to CAD 8.5 billion. This trend highlights Canada’s continued reliance on the US market while facing challenges in diversifying its export destinations.