Canada's balance of trade swings to surplus on strong energy, industrial exports

Canada’s international trade balance swung from a deficit of $115 million in November to a surplus of $3.0 billion in December, the first trade surplus since February 2010, and the highest since October 2008 before the recent recession. The surplus ends a nine-month string of deficits. Total exports for the month of December rose to $37.8 billion, while imports rose to $34.8 billion.

“Energy products accounted for over half the growth in the value of exports, followed by industrial goods and materials, which reached a record high,” Statistics Canada said. “Notable increases were also recorded in exports of machinery and equipment, agricultural and fishing products as well as forestry products.”

On the strength of energy products, exports to the United States rose 10.8% to $26.7 billion, the highest value since November 2008, while imports were up 2.3%. Consequently, Canada's trade surplus with the United States increased from $3.0 billion in November to $5.1 billion in December, the largest trade surplus since October 2008.

Meanwhile, Canadian exports to countries other than the United States rose 7.3% in December   while imports edged down 1.9%. As a result, Canada’s trade deficit with those countries narrowed to $2.1-billion from $3.1-billion in November.

Chart from Statistics Canada