Canada's trade surplus soared to $1.9 billion in January

Surplus was 1.2 billion dollars in December.

In January, Canadian exports totaled $67 billion, up 4.2% from the previous month. (File photo)

Canada posted a $1.9 billion merchandise trade surplus in January, buoyed by exports of wheat, canola and soybeans, Statistics Canada said Wednesday.

This result compared with a revised surplus of $1.2 billion for the month of December. The initial reading for the last month of 2022, released last month, had shown a deficit of $160 million.

The strength in January trade flows is consistent with the rebound in broader measures of activity, wrote economist Shelly Kaushik of BMO Capital Markets in a report.

“The question is whether the momentum continued in the first quarter or quickly faded. »

— Shelly Kaushik, BMO Capital Markets

January exports totaled $67 billion, up 4.2% from December, agricultural exports and fish and intermediate food products rose 11.9% to a record high of $5.9 billion.

Exports of motor vehicles and auto parts rose 8.2% in January to $8.3 billion, their highest level since May 2019.

Meanwhile Meanwhile, total imports rose 3.1% to $65.1 billion in January, as imports of motor vehicles and vehicle parts rose 11.1% to a record $11 billion.

In January, imports of motor vehicles and parts rose 11.1% to $11 billion. (File photo)

Exports in volume terms increased 5.3% in January, while imports rose 4.1%.

In a separate report, Statistics Canada said the country's international trade in services deficit reached $2.3 billion in January, up from a deficit of $1.3 billion in December.< /p>

The shift came as services imports rose 5.2% to $16.3 billion, while services exports fell 1.3% to reach $14 billion.

Combining international trade in goods and services, the country's trade deficit with the world was $378 million in January, Statistics Canada said. compared to a deficit of 119 million in December.