Canada’s trade balance turned positive in March, driven by higher crude oil prices and strong demand for gold, according to recent data from Statistics Canada. The country recorded a surplus of $1.78 billion, a significant improvement from the $5.11 billion deficit in the previous month.
The surge in exports was fueled by the increase in crude oil prices due to the conflict in Iran, boosting the value of Canadian exports. Additionally, despite a decrease in gold prices, global demand for the precious metal contributed to further export growth.
Total exports saw an 8.5% increase to $72.8 billion, with notable spikes in metal and non-metallic products, as well as energy exports reaching their highest levels since September 2022. Excluding these categories, there was a modest 1.1% increase in export value and a slight 0.3% decline in volume.
The export of motor vehicles and parts also saw a positive trend, rising by 4.5% in March following a significant increase in February.
In terms of trade with the U.S., exports rose by 8.3% to $48.51 billion, while imports from the U.S. decreased by 1.2% to $41.44 billion. This resulted in a trade surplus with the U.S. of $7.1 billion, the highest in six months, although the share of exports to the U.S. dropped to a record low of 66.7%.
On the other hand, exports to countries outside the U.S. hit a new high in March, increasing by 9.1%, while imports from non-U.S. countries decreased by 2.2%.
Following the release of the trade data, the Canadian dollar experienced a slight uptick, rising by 0.03% to 1.3620. Market analysts are anticipating potential rate cuts by the Bank of Canada later in the year.
