Canada's trade in November: Narrowing service deficit and goods trade shifts.
Canada's international trade in services has seen notable shifts in recent months, according to the latest data released by the Canadian government. In November, the country's service trade deficit narrowed to $1.0 billion, down from $1.2 billion in October. This change was primarily due to a 1.0% increase in service exports, reaching $16.6 billion, while service imports saw a slight decrease of 0.1%, settling at $17.6 billion. Within exports, both commercial and travel services exhibited significant growth, increasing by 1.0% and 1.7% respectively, largely driven by increased spending by visitors from the United States and other countries in Canada.
Regarding imports, the slight decrease was mainly due to lower payments for travel and commercial services in November. However, this decline was largely offset by an increase in transportation service imports, particularly in maritime transportation services, which grew by 4.6%. This increase is linked to the transportation of goods entering Canada, highlighting the importance of the maritime sector in the country's economy.
In a broader context, Canada's total trade in goods and services reflected an interesting dynamic. Total imports of goods rose by 1.9% to $64.2 billion, while exports decreased by 0.6% to $65.7 billion in November. This resulted in a reduction of the goods trade surplus from $3.2 billion in October to $1.6 billion in November. Combined, the trade balance for goods and services in Canada recorded a surplus of $0.6 billion in November, a decrease compared to the $2.0 billion surplus observed in October. These movements in goods and services trade reflect the changing nature of the global economy and Canada's position within it. Additionally, it's noteworthy that the service trade deficit figures for October were revised down from $1.3 billion to $1.2 billion, following an upward revision in service exports and a downward revision in imports. These revisions underscore the importance of commercial, travel, and transportation services in the Canadian economy and their impact on the country's overall trade balance.