October 6, 2023
Statistics Canada announced that Canada's merchandise exports increased 5.7% in August, while imports rose 3.8%.
As a result, Canada's merchandise trade balance went from a deficit of $437 million in July to a surplus of $718 million in August, the first trade surplus observed since April.
The Federal agency notes that exports recorded the strongest percentage increase since October 2021. Overall, exports were up in 7 of the 11 product sections, with exports of unwrought gold and crude oil contributing the most to the monthly gain
Total imports, which had posted the sharpest decline in 18 months in July increased enough in August to offset two-thirds of the previous month's decrease. Overall, increases were observed in 9 of the 11 product sections.
Exports to countries other than the United States were up 7.7% in August. Exports to Japan (various products), the United Kingdom (gold and crude oil) and the Netherlands (various products) saw the sharpest increases. After falling 12.6% in July, imports from countries other than the United States rose 9.8% in August. Imports from China (widespread increases throughout imported products) and South Korea (various products) saw the largest gains.
Canada's trade deficit with countries other than the United States widened from $8.6 billion in July to $9.7 billion in August.
Exports to the United States increased 5.2% in August, boosted by strong energy product prices. Meanwhile, imports from the United States rose 0.6%. As a result, Canada's trade surplus with the United States widened from $8.2 billion in July to $10.4 billion in August, the highest surplus observed since June 2022, when Canadian exports to the United States were at a record high.