Canada Swings to Trade Surplus Boosted by Oil and Gold Exports

In March, Canada achieved a C$1.78 billion trade surplus driven by increased crude oil prices and gold demand. While imports fell, exports surged, reversing the previous month's deficit. Exports to the U.S. rose with a notable increase in energy and metal categories, despite a decrease in import volumes.

Canada has swung to a trade surplus in March, buoyed by rising crude oil prices and a surge in gold demand. This marks a stark contrast from the previous month's deficit, as exports made a significant leap forward while imports slowed down, according to data released on Tuesday by Statistics Canada.

The country's merchandise trade balance hit a surplus of C$1.78 billion, moving away from February's C$5.11 billion deficit. The war in Iran played a role in driving up crude oil prices, enhancing Canada's export values, further supported by a global demand spike for gold, noted the statistics agency.

Notably, exports to the United States increased by 8.3%, reaching C$48.51 billion, largely influenced by heightened shipments of passenger cars and light trucks. Canada's trade surplus with the U.S. stretched to C$7.1 billion, concurrently with a drop in U.S imports. Meanwhile, exports to other countries also hit a record high, offering a bright spot in global trade dynamics.