Oil and gold exports help Canada swing to surprise trade surplus in June
2024.08.06 08:55
OTTAWA (Reuters) – Canada recorded a surprise trade surplus of C$638 million ($461 million) in June, as oil and gold helped exports overtake imports for the first time in 4 months, Statistics Canada data showed on Tuesday.
Analysts polled by Reuters had forecast a C$1.84 billion trade deficit. May’s trade deficit was revised to C$1.61 billion from a C$1.93 billion deficit reported initially.
Total exports jumped 5.5% in June, mainly due to and unwrought gold, while imports were up 1.9%, driven by cars and light trucks, data showed. By volume, exports rose 3.8% in June, while imports increased by 1.3%.
The Bank of Canada lowered its benchmark rate for a second straight month in July, and indicated its focus was shifting to boosting the economy.
The bank expects growth to pick up in the second half of 2024, led by stronger exports and a recovery in household spending as borrowing costs ease. Canada’s monthly GDP growth rate is expected to slow to 0.1% in June from 0.2% in May, data showed last week.
In June, energy exports rose 11.7%, helped by higher shipments as well as prices of crude oil, Statscan said.
The rise in crude oil exports was partly due to higher shipments to Asian countries, reflects increased deliveries from via the recently-expanded Trans Mountain pipeline, the agency said.
The rise in total imports was led by motor vehicles and parts as well as consumer goods.
An 8.2% rise to a record C$6.8 billion in imports of passenger cars and light trucks drove the motor vehicles and parts category in June. The growth occurred amid a recovery from production disruptions and delayed deliveries in the United States in late 2023 and early 2024, Statscan said.
Exports to the United States, by far Canada’s largest trading partner, rose for a third consecutive month and outpaced the growth in imports in June, leading to Canada’s trade surplus with its neighbor widening to the highest level since November 2023.
($1 = 1.3840 Canadian dollars)
