For the second month in a row, Canada recorded a positive trade balance, as merchandise exports continue to outweigh imports.
In February, Canada’s trade surplus slightly fell to $1 billion, following a downward revised $1.2 billion surplus in the month before. This is the first time that Canada had a positive trade balance for two consecutive months since 2016. Following an 8.2% surge in January, total exports fell by 2.7% to $49.9 billion in February, but still remained 4.1% above pre-pandemic levels recorded during the same period last year.
The majority of the decline in exports was attributed to a decrease in metal and non-metallic mineral products, motor vehicles and parts, and aircraft and other transportation equipment and parts product sections. Canada’s energy product exports were able to partially offset the decline, as they increased by 18.3% to $9.5 billion— the highest level since December 2019.
Canada’s imports also suffered a drop in February, falling by 2.4% to $48.8 billion— the lowest level since August of 2020. The largest declines were noted among motor vehicles and parts imports, followed by imports of energy products. However, an increase of 29.1% in aircraft and other transportation equipment and parts imports was able to slightly outweigh February’s overall decline.
In the meantime, Canadian exports to the US rose by 0.8% in February, to a total of $37.4 billion. Significant increases in exports of natural gas and crude oil were more than able to offset the large declines in exports of motor vehicles and parts. Canada’s trade surplus with the US rose from $5.9 billion in January to $6.8 billion in February, marking the largest surplus with the country since September 2008.
Information for this briefing was found via Statistics Canada. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.