In the month of August, Canada's trade deficit with the world expanded to .0 billion Canadian dollars (1.9 billion US), since a drop in exports took over slowing imports.

As per the Statistics Canada, a government agency, the deficit grew from 1.3 billion dollars (1.24 billion US) in July.

While exports during the month sank five percent to 29.2 billion dollars (27.9 billion US) after two months of increases, imports came down 8 percent to 31.2 billion dollars (29.8 billion US). Analysts had predicted a narrowing trade deficit to about 800 million dollars ($763 million US).

Exports and imports have generally been falling, after touching record highs in July 2008. While export volumes have plunged by 21.3 percent, prices have dropped by 16.3 percent. On the other hand, import volumes sank by 18.1 percent, while prices have decreased by 3.5 percent.

But it should be mentioned here that April 2009 proved to be a turnaround, as since then the import volumes generally hiked as prices plunged, while the decline in export volumes and prices slowed.

During the month of August, exports decreased in all sectors, led by machinery and equipment, agricultural and fishing products, industrial goods and materials, and automotive products.

A decrease in imports was mostly because of a 2.6 percent reduction in prices, mostly of machinery and equipment.