MONTRÉAL, Québec (CU)_Canada’s exports to neighbouring United States rose sharply in January, thereby leading to a surprise trade surplus, according to Statistics Canada. The Agency said on Friday that Canada reported a trade surplus of C$1.41 billion (US$1.11 billion) with the rest of the world, although analysts had predicted a deficit of about C$1.40 billion.
“In a sea of really bad news this is an island paradise. Everything is up,” Peter Hall, chief economist at Export Development Canada, said.
He noted that demand for commodities from the United States will continue to grow as Canada’s economy strengthens, with vaccinations stimulating a broader recovery from the COVID-19 pandemic.
In January this year, the North American nation reported an increase in exports by 8.1 per cent, led by a large export of used aircraft to the United States. However, even without that sale, aggregate exports in the country would have grown, particularly with strong exports of crude oil, gold bars and lumber.
Experts say that the return to a trade surplus – following the deficit of C$1.98 billion reported in December – is consistent with the expectation that Canada’s trade position will improve through the year, considering the rise in global demand and more stable energy prices.
Meanwhile, the country’s export of services also rose this month with the increase in transportation services, although this number still remains 16.3 per cent below the February 2020 level. Imports to Canada, on the other hand, also edged up 0.9 per cent, mostly on account of higher energy product imports.
