Canada Swings to Surplus as Oil and Gold Exports Surge

Canada's trade balance showed a surplus in March, driven by higher crude oil prices and an increase in gold demand, leading to an 8.5% rise in exports. This marks the first surplus in six months, attributed to the impact of geopolitical tensions and high global demand, reversing previous deficits.

Canada's merchandise trade balance leaped into surplus in March, as boosted crude oil prices and soaring gold demand significantly increased exports while imports declined, Tuesday's data revealed.

Statistics Canada reported a C$1.78 billion surplus, reversing the C$5.11 billion deficit from February. The shift highlights the first surplus in six months, propelled by geopolitical tensions affecting crude oil prices, thereby elevating Canadian export values. Despite a drop in gold prices, international demand supported export growth.

Analysts expected a C$2.88 billion deficit, but exports climbed by 8.5% to C$72.8 billion. Notably, metal and non-metallic products set a record with a 24% increase, and energy exports surged 15.6%, reaching their peak since September 2022. Trade with the U.S. saw exports increase by 8.3%, while imports decreased, contributing to a C$7.1 billion trade surplus with the U.S.

Meanwhile, exports to countries other than the U.S. continued to break records, rising 9.1%, with a notable drop in imports from these nations, showing a 2.2% decline.