Canada’s $5.3 billion trade surplus hits highest level since 2008

OTTAWA-

Canada’s trade surplus reached $5.3 billion in May, the largest trade surplus since August 2008, helped by higher energy prices and a drop in imports.

Statistics Canada announced on Thursday the result compared to a revised surplus of $2.2 billion in April.

CIBC senior economist Andrew Grantham said the widening trade surplus could be as good as it gets, given energy prices have fallen from their May level and imports will likely rebound with the reopening in China.

“However, some of the strength in non-energy exports, such as potash, copper and other metals/minerals, may persist if Canadian companies are able to increase production and make up for some of the holes left in the economy. global supply chain by the sanctions imposed on Russia after its invasion of Ukraine,” Grantham wrote in a report.

Exports rose 4.1% in May to $68.4 billion, according to Statistics Canada, with eight of the 11 sectors tracked by the agency recording growth.

Exports of energy products rose 5.7%, with exports of crude petroleum and bitumen rising 9.2%, boosted by higher prices, while the aircraft and other transportation equipment and parts category rose 9.2%. increased by 34.2%.

Exports of metallic ores and non-metallic minerals rose 17.2%, led by potash exports which climbed 34.9%, partly due to a strong increase in exports to Brazil.

Meanwhile, imports fell 0.7% in May to $63.1 billion.

Imports of consumer goods fell 4.7% in the month, while aircraft and other transportation equipment and parts fell 22.7% from April.

Export volumes for May rose 1.7%, while import volumes fell 1.4% from April.

Regionally, Canada’s trade surplus with the United States hit a record $14 billion in May, up from $12.9 billion in April, as exports to the country’s largest trading partner having increased by 2.4% and imports by 0.3%.

Canada’s merchandise trade deficit with countries other than the United States was $8.6 billion, down from $10.7 billion in April.

In a separate report, Statistics Canada said the country’s services trade deficit was $1.1 billion in May, down from $1.3 billion in April. Overall, services exports rose 1.7% to $12.4 billion, while services imports rose 0.5% to $13.5 billion.

According to Statistics Canada, when trade in goods and services are combined, Canada’s trade surplus with the world was $4.2 billion in May, down from $900 million in April.

This report from The Canadian Press was first published on July 7, 2022.