A shipping container is unloaded at the Port of Montreal, on May 17, 2021.CHRISTINNE MUSCHI/Reuters
Canada posted a smaller-than-expected trade surplus in February, as both exports and imports recorded widespread declines, while January’s whopping surplus was revised significantly lower, Statistics Canada data showed on Wednesday.
The country’s trade surplus with the world fell to $422-million from a revised $1.20-billion surplus in January. Previously January’s surplus was reported to be $1.92-billion.
Analysts had forecast a February surplus of $1.80-billion.
“After a stronger-than-expected start to the year, we’ve given back a good portion of those gains,” said Stuart Bergman, chief economist at Export Development Canada, the country’s export credit agency.
The Canadian economy grew more than expected in January and was seen expanding further in February, data showed last week, a factor complicating the central bank’s plans to refrain from further interest rate hikes as long as the economy slows and inflation eases in line with forecasts.
Exports fell 2.4 per cent, dragged down by decreases in nearly all product areas. Metal and non-metallic mineral products as well as autos and auto parts were the main contributors. By volume, exports declined 0.9 per cent in February.
“Exports may have fallen again last month, but this still suggests that a large positive contribution from net trade explains part of the likely pickup in first-quarter GDP growth,” said Stephen Brown, deputy chief North America economist with Capital Economics.
Total imports were down 1.3 per cent, with declines in most product categories. Industrial machinery, equipment and parts as well as motor vehicles and parts were among the main drags. By volume, imports fell 0.8 per cent.
A rise in imports of consumer goods, primarily pharmaceutical products, partially offset the declines, Statscan said.
The Canadian dollar was little changed, trading at 1.3440 or 74.40 U.S. cents to the greenback.