Statistics Canada announced on Tuesday that Canada’s merchandise trade deficit stood at CAD2.45 billion in August, narrowing from a revised CAD2.53-billion gap in July (originally a CAD2.45-billion gap).

Economists had forecast a deficit of CAD2.00 billion.

According to the report, Canada’s exports declined 1.0 percent m-o-m to CAD44.93 billion in August, led by drops in exports of motor vehicles and parts (-6.8 percent m-o-m) and aircraft and other transportation equipment and parts (-14.5 percent m-o-m).

Meanwhile, imports fell 1.2 percent m-o-m to CAD47.38 billion in August, with lower imports of aircraft and other transportation equipment and parts (-25.3 percent m-o-m) contributing the most to the overall decrease.