Canada sees a $638m trade surplus in June, driven by rising exports of crude oil and gold
In June, Canada's merchandise exports rose by 5.5 percent, while imports increased by 1.9 percent.
This shift led Canada's merchandise trade balance to move from a $1.6bn deficit in May to a $638m surplus in June, ending three consecutive monthly deficits. The June surplus remains within the typical bounds for monthly revisions to imports and exports.
The ‘International trade monthly interactive dashboard’ provides the most recent results of Canada's international trade in an interactive format.
Total exports in June increased by 5.5 percent, the largest percentage rise since February 2024. Nine of the eleven product sections saw increases. Crude oil and unwrought gold contributed to more than three-quarters of the total export value increase. In volume terms, exports rose by 3.8 percent.
Energy product exports surged by 11.7 percent, with crude oil exports climbing by 13.3 percent. Although crude oil export prices rose, volumes significantly contributed to the increase, driven by higher exports to Asian countries.
This rise reflects increased deliveries from Western Canada via the recently expanded Trans Mountain pipeline. After a 7.3 percent decline in May, exports of metal and non-metallic mineral products rose by 11.8 percent in June.
The largest increase came from exports of unwrought gold, silver, and platinum group metals and their alloys, mainly unwrought gold, which grew by 35.3 percent.
Monthly fluctuations in unwrought gold export values have been significant in 2024, with a 28.5 percent monthly variation rate due to geopolitical factors and high demand. In June, unwrought gold exports to the UK increased notably, driven by higher refined gold deliveries.
Imports in June grew by 1.9 percent to $66.bn, nearly matching the all-time high of June 2022. Nine of the eleven product sections saw increases in June 2024. In volume terms, imports increased by 1.3 percent.
After a 4.2 percent decline in May, motor vehicles and parts imports rose by 5.1 percent in June, significantly boosting total imports.
Passenger cars and light trucks imports reached a record $6.8bn, marking the fourth increase in five months, amid recovery from production disruptions and delayed deliveries in the US.
Consumer goods imports rose by 3.7 percent in June. Pharmaceutical products imports increased by 16.9 percent, driven by higher imports from the US and Ireland, following two consecutive monthly declines.
However, lower imports of metal ores and non-metallic minerals, which fell by 17.1 percent, partly offset these gains. Imports of other metal ores and concentrates dropped by 18.5 percent in June after a 27.1 percent rise in May, with gold for refining and copper ores contributing most to the monthly variation.
Exports to the US rose by 2.6 percent in June, marking the third consecutive monthly increase, while imports from the US increased by 1.7 percent.
Consequently, Canada's trade surplus with the US widened from $8.8bn in May to $9.4bn in June, the largest surplus since November 2023.
Exports to countries other than the US rebounded by 15.7 percent in June after a 13 percent decline in May. Significant gains were seen in exports to the UK (unwrought gold), India (crude oil and copper ore), and Italy (aircraft).
Imports from countries other than the US increased by 2.1 percent, with notable increases from China (various products), Mexico (light trucks), and South Korea (various products). As a result, Canada's trade deficit with countries other than the US narrowed from $10.4bn in May to $8.7bn in June.
In the second quarter of 2024, imports increased by 2 percent, following a 0.1 percent rise in the first quarter. This growth was driven by higher imports of motor vehicles and parts (+5.1 percent) and metal and non-metallic mineral products (+7.9 percent).
Exports rose by 1.1 percent in the second quarter, following a 0.9 percent decline in the first quarter. The increase was led by aircraft and other transportation equipment and parts (+12.8 percent) and energy products (+2 percent), though offset by a 3.1 percent decline in motor vehicles and parts exports.
In real terms, second-quarter imports increased by 0.3 percent, with the same product sections driving the nominal and real increases. Real exports fell by 0.4 percent, mainly due to lower exports of metal and non-metallic mineral products.
May's import figures were revised from $64.4bn to $64.8bn, and export figures from $62.4bn to $63.2bn.
In June, service exports increased by 0.6 percent to $17.2bn, while service imports rose by 1.6 percent to $18.3bn. Combined, goods and services exports rose by 4.4 percent to $83.8bn, and imports increased by 1.8 percent to $84.3bn.
Consequently, Canada's total trade deficit with the world narrowed from $2.6bn in May to $501m in June.
