Canada posted its largest trade surplus in 14 years in May

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Canada posted its largest trade surplus in 14 years in May

Exports rose 4.1% in May, to $68.4 billion, according to Statistics Canada.

Canada's trade surplus reached $5.3 billion in May, its highest level since August 2008, supported by higher energy prices and a decline imports, Statistics Canada said Thursday. federal agency.

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

“However, some of the strength in non-energy exports, such as potash, copper and other metals and minerals, could persist if Canadian companies…[compensate] for some of the holes left in the chain of global supply by the sanctions imposed on Russia.

— CIBC Economist Andrew Grantham

Exports rose 4.1% in May to $68.4 billion, 8 of the 11 sectors tracked by the agency that recorded growth.

Exports of energy products rose 5.7%, with crude oil and bitumen rising 9.2%, boosted by higher prices, and aircraft and other machinery and equipment. transportation parts up 34.2%.

Ores and non-metallic minerals exports climbed 17.2%, fueled by potash exports which jumped 34.9%, notably 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 those of aircraft and other transportation equipment and parts fell 22.7% from April.

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

Canada's trade surplus with the United States reached a record high of $14.0 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 reported that the country's services trade deficit was $1.1 billion in May, down from $1.3 billion in April.

In the together, services exports rose 1.7% to $12.4 billion, while services imports rose 0.5% to $13.5 billion.

According to Statistics Canada, combining trade in goods and services, Canada's trade surplus with the world was $4.2 billion in May, up from $900 million in April.

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