Canada: trade balance in surplus again and higher than it has been since 2008

Canada: Retail Sales Losing Speed

Data released on Thursday shows Canada’s trade balance is back in surplus. Analysts at the National Bank of Canada suggest this is the largest surplus since September 2008. Analysts have warned that on a quarterly basis, the ongoing merchandise trade is likely to impact growth in Q2.

Important Quote:

“The goods trade balance returned to a surplus in June, a level not seen since September 2008. With the exception of the period immediately following the arrival of COVID-19 in Canada, the monthly growth in exports was the second largest in the data.” 1988.

“International shipments were boosted by a solid performance in the energy segment, the latter benefiting from higher prices and increased demand. Monthly growth lifted energy exports by 14.9% from their pre-pandemic peak (2019M12). Exports were not limited to the energy sector.”

“The trade surplus with the US reached its highest level in 13 years in June. It is worth remembering that as our southern neighbors began to reopen their economies, which prompted a resumption of US demand for Canadian products. permitted to.”

“In terms of quarterly data, Canada’s growth in the second quarter is likely to be burdened by the merchandise trade as real exports (-4.7% q/q) fell more than real imports (-0.5%), accounting for more of the import volume.” Strong expansion in the machine tool category (+4.0% q/q) is expected to be good news for capital expenditure in Q2 of 2021.”

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