Canadian exports and imports hit document highs in March, as an alternate with the USA and China — Canada’s top trading companions — soared, the government statistical company stated Wednesday.
The nation’s change surplus narrowed to Can$2.5 billion (US$2.0 billion), from a Can$3.1 billion surplus the preceding month.
“We may not have seen the big increase in trade surplus that was expected, but today’s figures were still positive from the point of view of overall economic growth,” CIBC analyst Andrew Grantham said in a research note.
“Looking ahead, export volumes for manufactured goods could see some weakness as global growth decelerates,” he said.
“But demand for Canadian commodities globally should remain strong as developed countries look to substitute away from Russian product.”
According to Statistics Canada, imports rose 7.7 percent to Can$61.1 billion in March.
Both import prices and volumes of bitumen rose “markedly,” the agency said, coinciding with Russia’s invasion of Ukraine and sanctions imposed on Moscow.
More clothing, footwear and accessories were also imported, along with more passenger cars and light trucks as assembly ramped up in North American plants, machinery and equipment, industrial chemicals, plastics and rubber products, and aircraft.
Exports, meanwhile, increased 6.3 percent in the month to Can$63.6 billion, surpassing a previous record set in February.
Energy exports, led by crude oil, increased almost 13 percent to a record Can$17.9 billion and accounted for 28 percent of total exports.
Higher prices were the main factor behind the increase in Canadian crude oil exports, while volumes were actually down, said Statistics Canada.
Exports of passenger cars and light trucks bounced back, as Canadian production was less affected in March by disruptions related to semiconductor shortages.
Demand for Canadian fertilisers soared, also in response to the war in Ukraine, pushing up potash exports to a record level.
Led by oil and passenger vehicles, trade with the United States, meanwhile, reached an all-time high.
As a result, Canada’s alternate surplus with America widened to a record Can$12.6 billion in March.
Imports from China additionally rose sharply for a second consecutive month, up almost 30 percent, with Canadians buying greater Chinese-made computers and mobile phones, industrial machinery, and patron goods.
