In February 2024, Canada’s merchandise trade witnessed significant growth, with both exports and imports experiencing notable increases, according to data released by Statistics Canada. The surge in trade activity resulted in a widening merchandise trade surplus with the world, highlighting positive trends in Canada’s international trade landscape.
Canada’s merchandise exports surged by 5.8% in February, marking the largest percentage increase since August 2023. Notably, increases were observed in 9 out of the 11 product sections. The standout performer was unwrought gold, contributing significantly to the overall export growth. Exports of metal and non-metallic mineral products also saw a substantial increase, reaching record levels in February. Additionally, exports of farm, fishing, and intermediate food products experienced a noteworthy rise, supported by increased shipments of wheat and other crop products.
Despite challenges such as ongoing retooling in the motor vehicle sector, exports of motor vehicles and parts posted a respectable increase of 3.8% in February.
Total imports surged by 4.6% in February, reaching their highest level since June 2023. The increase was widespread across product sections, except for metal and non-metallic mineral products, which saw a slight decline. Notably, imports of electronic and electrical equipment and parts recorded a substantial increase, driven primarily by a resurgence in imports of computers and computer peripherals. Consumer goods imports also saw a notable rise, with clothing, footwear, and accessories leading the way.
Energy products imports experienced a significant uptick, primarily due to a surge in crude oil imports, following a decrease in January.
Canada’s trade dynamics with both the United States and other countries exhibited positive trends in February. Exports to countries other than the United States saw a robust increase, driven mainly by a surge in unwrought gold exports to Switzerland and the United Kingdom. Similarly, imports from countries other than the United States rose, with notable increases observed from China, the United Kingdom, Indonesia, and South Korea.
Trade with the United States also showed growth, with exports and imports both increasing, leading to a slight widening of Canada’s trade surplus with its southern neighbor.
Revisions to January’s merchandise export and import data were also noted, with imports revised to $62.4 billion and exports to $63.0 billion. Additionally, in February, monthly service exports increased by 1.9%, reaching $17.4 billion, while imports saw a modest 0.8% increase to $18.4 billion. When combined, total trade in goods and services saw exports surge by 5.0% to $84.0 billion and imports rise by 3.7% to $83.6 billion, resulting in a transition from a $595 million deficit in January to a surplus of $367 million in February.
With positive trends observed in both exports and imports across various sectors and trading partners, Canada’s international trade landscape appears robust, setting a promising tone for future economic growth and prosperity.