Canada posts $5.3 billion trade surplus for May, strongest in 14 years

Canada’s trade surplus with the United States hit a record $14 billion in May. (Photo: The Canadian Press)

Ottawa – Canada’s trade surplus reached $5.3 billion in May, the highest level since August 2008, boosted by higher energy prices and lower imports, Statistics Canada reported Thursday.

That result compares to an adjusted surplus of $2.2 billion for the month of April, the federal agency said.

This improvement in the trade surplus could represent a peak, CIBC economist Andrew Grantham said, given that energy prices have fallen from their level in May and imports are likely to rebound with the reopening in China.

“However, some strength in non-energy exports, such as potash, copper and other metals/metals, could continue if Canadian companies could increase production and offset some of the gaps left by the global supply chain” sanctions imposed on Russia after its invasion of Ukraine, he wrote. Grantham in a report.

According to Statistics Canada, exports rose 4.1% in May to $68.4 billion, with 8 of the 11 sectors tracked by the agency registering growth.

Exports of energy products increased by 5.7%, with exports of crude oil and bitumen increasing by 9.2%, supported by higher prices, and exports of aircraft and other transportation equipment and parts increased by 34.2%.

Exports of ores and non-metallic minerals increased by 17.2%, led by exports of potash, which jumped by 34.9%, mainly due to the 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 imports of aircraft and other transportation equipment and parts fell 22.7% from April.

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

Regionally, Canada’s trade surplus with the United States hit a record $14 billion in May, from $12.9 billion in April. Exports to the country’s largest trading partner 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 reached $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, incorporating trade in goods and services, Canada’s trade surplus with the world was $4.2 billion in May, compared to $900 million in April.

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