According to Statistics Canada, Canada posted a trade surplus of $1.4 billion in January, the first since May 2019, owing to a sharp 8.1 percent increase in merchandise exports. It was also the largest surplus since July 2014. Imports rose 0.9 percent in January compared with the previous month.
Total exports rose 8.1 percent in January to $51.2 billion, with increases in all product sections. This was the largest percentage increase since the rebound in the summer of 2020 that followed the easing of restrictions following the first wave of the pandemic. Excluding the strong fluctuations in 2020, the January increase was the largest since August 1995. Approximately one-third of the increase in the value of exports was driven by price growth. In real (or volume) terms, exports were up 5.1 percent.
Following two consecutive months of decline, total imports increased 0.9 percent in January to $49.8 billion. Imports rose in 7 of the 11 product sections. In real (or volume) terms, imports were up 1.0 percent.
Exports to the United States rose 11.3 percent in January to $37.2 billion, the highest value since September 2019. The spike in exports of aircraft, gold bars, crude oil and lumber was largely due to stronger trade with the United States. Following the steep declines in the spring of 2020, exports to the United States had remained below pre-pandemic levels. For the first time in January, exports to the United States were higher than February 2020 levels.
Imports from the United States edged up 0.4 percent to $31.0 billion. As a result, Canada's trade surplus with the United States over doubled from $2.5 billion in December to $6.2 billion in January. This was the largest surplus since September 2008.
Exports to countries other than the United States, which reached a record high in December 2020, edged up 0.3 percent in January to $14.0 billion. Higher exports to Saudi Arabia (other transportation equipment) was largely offset by lower exports to the United Kingdom (aircraft, oilseeds and gold).
Imports from countries other than the United States rose 1.7 percent in January. Imports from Switzerland (gold) and Nigeria (crude oil) posted the largest increases.
As a result, Canada's trade deficit with countries other than the United States widened from $4.5 billion in December to $4.8 billion in January.