Canada: Trade surplus hits four-year high – NBC
National Bank of Canada’s (NBC) Jocelyn Paquet reports Canada’s merchandise trade surplus in goods reached a four-year high of C$3.86 billion in June, beating expectations.
Canada's merchandise trade surplus in June hit a four-year high of C$3.86 billion, surpassing market expectations. Exports surged to a record C$77.5 billion for the fifth month in a row, primarily due to strong sales of gold and copper. However, energy exports declined as falling commodity prices and eased tensions in the Middle East led to a 10.0% drop in the energy sector.
Excluding gold and copper, exports fell by up to 3.0% in June. Quarterly trade data indicates that merchandise trade significantly contributed to Q2 GDP growth, with exports increasing by 28.5% quarter-over-quarter and outpacing imports by 10.6%. The rise in imports, particularly in the machinery and equipment category (+9.6%), may also have positively impacted growth during the quarter.
The trade surplus with the United States, Canada's primary energy export destination, narrowed in June, as the majority of exports, including gold and copper, went to this key market.
Written by urgent.news from FXStreet's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
