UPDATE 1-Canada trade deficit jumps as imports rise, exports fall

Fri Jan 11, 2013 8:35am EST

Related Topics

* Imports rise 2.7 percent, exports fall 0.9 percent

* Data confirm problems facing export sector

* Trade deficit is fourth-highest on record

OTTAWA, Jan 11 (Reuters) - Canada's trade deficit unexpectedly jumped to C$1.96 billion ($2.00 billion) in November from C$552 million in October as imports rose and exports fell, Statistics Canada data indicated on Friday.

The deficit, the fourth-largest on record, was much greater than the C$600 million shortfall analysts had expected and reflects the problems of exporters faced with weak markets and a strong Canadian dollar.

Imports rose 2.7 percent on higher shipments of electronic and electrical equipment, in particular cellular phones, as well as motor vehicles and parts. Volumes grew 2.2 percent from October.

Exports dropped 0.9 percent on lower demand for farm, fishing and food products and metal and non-metallic mineral products. Volumes rose 0.4 percent from the previous month.

Exports to the United States, which took 75.5 percent of all Canadian exports in November, grew 3.9 percent while imports were up by 1.7 percent. As a result, Canada's trade surplus with the United States increased to C$3.34 billion from C$2.69 billion in October.

Exports to countries other than the United States fell by 13.4 percent to C$9.21 billion, the lowest level since September 2010. Imports rose 4.6 percent to C$14.51 billion, resulting in a record deficit of C$5.30 billion.

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