Canada’s merchandise trade surplus grew to $5.3 billion in May, the largest trade surplus since August 2008, helped by higher energy prices and a drop in imports.
Statistics Canada said on Thursday that the result compares with a revised surplus of $2.2 billion in April.
CIBC Senior Economist Andrew Grantham said a widening trade surplus might be for the best, given that energy prices have fallen relative to their level in May and imports are likely to rebound as China reopens. .
“However, some of the strength in non-energy exports, such as potash, copper and other metals/minerals, could persist if Canadian companies are able to increase production and offset some of the holes left in the supply chain. over the sanctions imposed on Russia following its invasion of Ukraine,” Grantham wrote in a report.
Read more:
Women with college degrees more likely to access CERB than male graduates: StatCan
Statistics Canada said exports rose 4.1% in May to $68.4 billion, as eight of the 11 sectors tracked by the agency saw growth.
Exports of energy products increased by 5.7 percent, as exports of crude oil and bitumen increased by 9.2 percent, driven by higher prices, while the category of aircraft and other transport equipment and spare parts increased 34.2 percent.
Exports of metallic and non-metallic minerals increased by 17.2%, led by potash exports, which increased by 34.9%, in part due to a large increase in exports to Brazil.
Meanwhile, imports fell 0.7 percent in May to $63.1 billion.
Imports of consumer goods fell 4.7 percent in the month, while aircraft and other transportation equipment and parts fell 22.7 percent compared to April.
May export volumes increased by 1.7%, while import volumes fell by 1.4% compared to April.
Regionally, Canada’s trade surplus with the United States reached a record $14 billion in May compared to $12.9 billion in April, as exports to the country’s largest trading partner rose 2.4% and imports 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 compared with $1.3 billion in April. Overall, service exports rose 1.7 percent to $12.4 billion, while service imports rose 0.5 percent to $13.5 billion.
Statistics Canada said that when trade in goods and services are combined, Canada’s trade surplus with the world was $4.2 billion in May compared to $900 million in April.
This report from The Canadian Press was first published on July 7, 2022.
© 2022 The Canadian Press