Canada: Two-way trade reached an all-time high, largest surplus in 10 years – NFB

Data released on Tuesday, showed the trade surplus in Canada widened from CAD 1,86 billion to 2.09 billion in October. Analysts at the National Bank of Canada point out it is the highest level in 10 years. 

Key Quotes:

“The merchandise trade surplus expanded at a pace consistent with consensus expectations in October and reached a 10-year high. This gain was explained by exports benefiting from higher commodity prices and increased demand while supply chain disruptions started to ease. The growth of both exports and imports to an all-time high were led by motor vehicles and parts as shortages of semi-conductor chips relented.”

“Exports of energy products were the second-largest contributor to the growth for trade in the month as they reached a record high at C$13.9 bln.”

“Largely because of lower supply chain disruptions, exports to the United States grew 6.9% to a record high of C$42.2 bln, while imports from our largest trade partner also surged (+9.1%) to their second highest print on record. As a result, the trade surplus with the U.S. remained essentially unchanged (C$-0.1 bln) from its highest level in 13 years in October.”

“A deterioration for the trade balance in November is likely due to the events of last month on the west coast of the country.”