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Canada’s trade surplus widens in August as imports fall By Reuters

by Mike Robinson

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© Reuters. FILE PHOTO – A truck passes stacked shipping containers at Montreal’s Port of Montreal (Quebec, Canada), May 17, 2021. REUTERS/Christinne Muschi

By Julie Gordon

OTTAWA, (Reuters) – Canada’s trade surplus increased in August. This was easily better than analyst predictions. Strong exports of energy products outweighed a decrease in two-way trade for parts and motor vehicles. Data showed Tuesday.

Trade surplus in the country was C$1.94billion ($1.54billion) in August. That’s well over an average analyst estimate of C$430m and an increase from C$736m in July.

Exports rose 0.8% led by energy products, which reached their highest level since March 2014. Also, metal and nonmetallic mineral product exports rose 1.8%.

Imports fell 1.4% in the meantime, due to a decrease in parts and motor vehicle imports.

“As expected, the global shortage of chips continued to affect production in that sector (motor vehicle),” said Royce Mendes in a note.

He added that the fact that there was an unexpectedly large surplus due to weaker goods imports will probably blunt the effects of the Canadian dollar data.

After the data was released, the Canadian dollar traded almost unchanged at 1.2589 against the greenback or 79.43 U.S.cents.

($1 = 1.2589 Canadian dollars)

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