Canada sees trade surplus in June following 3 months of trade deficits
(MENAFN) In June, Canada experienced a trade surplus, marking a significant shift after three consecutive months of trade deficits, as reported by Statistics Canada on Tuesday. This improvement in the trade balance came as a result of a notable increase in merchandise exports, which rose by 5.5 percent, while imports saw a smaller rise of 1.9 percent. These changes in trade activities led to Canada's merchandise trade balance transitioning from a deficit of USD1.6 billion in May to a surplus of USD638 million in June.
The actual figures surpassed market expectations, which had anticipated a trade deficit of USD2 billion. Additionally, the trade deficit for May was slightly revised from the initially reported USD1.9 billion to USD1.61 billion. This revision reflects a more favorable economic scenario than previously understood, adding to the positive outlook for June's trade performance.
June's export growth of 5.5 percent represented the largest percentage increase since February of the same year, highlighting a robust upturn in Canada's export activities. The statistical agency noted that this surge in exports was broadly based, with increases observed in nine out of the eleven product sections. This widespread growth across various sectors underscores the diverse strength of Canada’s export economy during this period.
A significant portion of the increase in export value was attributed to crude oil and unwrought gold, which together accounted for more than three-quarters of the overall rise in total exports. This substantial contribution from these key commodities played a critical role in driving the overall export growth, emphasizing their importance in Canada's trade portfolio. The statement from Statistics Canada underscores the pivotal role these products played in achieving the trade surplus in June.
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