Statistics Canada reports merchandise trade surplus of $1.1 billion in September

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OTTAWA — Canada’s trade surplus was $1.1 billion in September as export growth, boosted by wheat and crude oil, outpaced the rise in imports, Statistics Canada said Thursday.

The agency also revised its reading for August to show a surplus of $550 million from its original report of a surplus of $1.5 billion.

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“Canada posted its ninth consecutive trade surplus in September as the depreciation of the loonie boosted exports,” Bank of Montreal economist Shelly Kaushik wrote in a report.

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“Unfortunately, this last factor also adds to domestic inflationary pressures, which will keep the Bank of Canada on high alert. While falling commodity prices have weighed on nominal flows in recent months, trade volumes are expected to contribute to growth in the third quarter.

According to Statistics Canada, total September exports rose 1.3% to $66.4 billion.

Exports of agricultural, fishing and intermediate food products rose 16.7% to almost $4.9 billion, as wheat exports climbed 65.2% in September.

Exports of energy products rose 1.9% to $18.8 billion, as exports of crude oil rose 4.0%, boosted by higher volumes. Natural gas exports increased by 10.3%.

Meanwhile, imports rose 0.4% in September to $65.2 billion, as a 22.7% increase in pharmaceuticals helped push consumer goods imports up 3.7% at $13.7 billion.

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Imports of industrial machinery, equipment and parts rose 4.1% to a record high of $7.7 billion, while imports of energy products fell 16.7% to at $3.8 billion.

According to Statistics Canada, the average value of the loonie in September was 75.1 US cents, down 2.3 US cents from the August average, the biggest monthly decline since March 2020.

He noted that a large portion of import and export transactions are conducted in US dollars and must be converted to Canadian dollars when compiling trade statistics. The agency explained that when the Canadian dollar depreciates against the US dollar, the monthly trade values ​​converted to Canadian dollars are higher.

According to Statistics Canada, exports, expressed in US dollars, fell 1.7% in September, while imports fell 2.5%.

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In terms of volume, total exports rose 1.7% in September, while imports fell 0.8%.

In a separate report, Statistics Canada said the country’s monthly international trade in services deficit narrowed to $1.6 billion in September from a deficit of $1.8 billion in August, exports of services rose 2.3% to $12.9 billion and imports of services edged up 0.5%. hundred to 14.5 billion dollars.

Canada’s international trade in goods and international trade in services combined for a deficit with the world of $416 million in September, compared to $1.2 billion in August.

This report from The Canadian Press was first published on November 3, 2022.

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