Canadian trade surplus widens to $1.9 billion in August

Tuesday, 05 October 2021 21:40:26 (GMT+3)   |   San Diego
       

According to Statistics Canada, Canada's merchandise exports increased 0.8 percent in August, while imports decreased 1.4 percent. As a result, Canada's merchandise trade balance with the world remained in a surplus position, widening from $736 million in July to $1.9 billion in August.

Total exports increased 0.8 percent in August to $54.4 billion, a third consecutive monthly gain. Exports were up in 6 of 11 product sections with energy products rising the most. Non-energy exports edged down 0.4 percent. In real (or volume) terms, total exports rose 2.3 percent.

Exports of metal and non-metallic mineral products rose 4.0 percent in August to a record $6.9 billion. Higher export values of copper (+72.9 percent), iron and steel (+6.2 percent) and aluminum (+5.8 percent) products were responsible for more than three-quarters of that gain. Although prices have increased significantly since the onset of the pandemic, in part due to rising global demand, higher export volumes were behind the increase for the product section in August.

Following a 4.3 percent increase and a record high in July, total imports were down 1.4 percent to $52.5 billion in August, despite gains in a majority of product sections. In real (or volume) terms, total imports decreased 3.2 percent in August.

Imports from the United States fell 6.2 percent in August to $32.2 billion, the largest decline since the historic drops in the first half of 2020. Exports to the United States decreased 0.7 percent in August to $40.8 billion. As a result, Canada's trade surplus with the United States widened from $6.8 billion in July to $8.6 billion in August, the largest monthly trade surplus with the United States in 13 years.

Imports from countries other than the United States increased 7.2 percent in August. Imports from China, Mexico and South Korea all posted large increases, with gains in imports across a number of product categories. Exports to countries other than the United States were up 5.5 percent in August. Exports to Hong Kong (gold), Germany (iron ore), South Korea (coal) and China (coal) posted notable increases. Canada's trade deficit with countries other than the United States widened from $6.0 billion in July to $6.7 billion in August.


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