Tuesday, May 18, 2004

Trade surplus surges

Canada's trade surplus hit its highest level in three years in March as merchandise exports grew at almost twice the pace of imports.

Canadian companies exported nearly $34.9 billion worth of merchandise outside the country, up 1.7%. On the other hand, imports rose only 0.9% to nearly $28.7 billion, the highest level in a year.

As a result, the surplus surpassed $6.2 billion, its highest level since May 2001.

March's gain in exports followed a 7.5% rebound in February, marking the first back-to-back monthly increases since January 2003. This rise was led by automotive trade, which showed some consistency in March, dampening some recent trade volatility.

Exports to the United States rose 0.9% to $28.1 billion, their highest level since March last year, while imports from south of the border were up 1.2%. Canada's trade surplus with the United States remained unchanged at just over $8.1 billion.

Dip in energy exports

Canadian exports increased for all major sectors in March, except for a slight dip in energy products.

An increase of $200 million in passenger car exports helped automotive products achieve consecutive monthly gains for the first time since February 2003.

Housing starts in the United States grew again in March, contributing significantly to growth in both lumber and other wood fabricated material exports.

Automotive product purchases, mainly from the United States, led the gain in imports. Passenger car imports rose by almost $100 million, followed closely by both trucks and motor vehicle parts.

For more information, contact Matthew MacDonald (613-951-8551), International Trade Division.

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© 2004, Statistics Canada.