DARRYL DYCK
Canadian exports rose more than imports in the first quarter of 2010, yet another sign that the domestic economy is bobbing back to the surface as the floodwaters of recession ebb.
The country's seasonally adjusted deficit on current transactions with the rest of the world narrowed to $7.8-billion from $10.2-billion in the fourth quarter of 2009 thanks to a larger trade in goods surplus and a reduced deficit on international travel, Statistics Canada reported Friday.
The agency said Canada's goods surplus hit $1.7-billion in the first quarter of 2010, as the goods surplus with United States continued to expand for the second consecutive quarter.
"Cross-border financial transactions... generated continued inflows of foreign funds to the Canadian economy, though less than the previous quarter and was led again by purchases of Canadian securities," Statistics Canada said.
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"Strengthened foreign direct investment in Canada was also a source of funds for Canadian corporations in the first quarter. Non-residents have made large acquisitions of Canadian securities since the outset of 2009, mainly longer-term debt instruments."
Exports of goods have strengthened over the last three quarters, up $4.4-billion to $99.8-billion in the first quarter, with U.S. sales accounting for $3.4-billion of the increase. Exports are up $11.8-billion since a 10-year low hit in the second quarter of 2009.
Industrial goods led the increase in goods exports, up $2.8-billion on higher volumes and higher prices. Half of that was from metal and alloys products, up 50 per cent since the second quarter of 2009.
Energy exports were up $2-billion on higher oil and gas prices and volumes - half of that was due to a 25 per cent increase in natural gas exports.
The Vancouver Winter Olympic Games and Paralympic Games helped to narrow the deficit on trade in services by $500-million as spending by visitors to Canada rose five per cent, helped by a 5.8 per cent increase in visitors from overseas.