Canadian exports break records
What caused the growth in exports, what are imports, and what does this mean for the country's economy?
Following the province of Saskatchewan, export performance improved for the country as a whole. Statistics Canada reported that the country's export revenues rose 2.5% in April. Those are record numbers. At the same time, import spending fell by 0.2%. Part of the drop in spending is attributed to falling energy prices.
As a result, Canada's trade surplus reached CAD 1.94 billion in April. This figure is twice as high as analysts' forecasts. The surplus was expected to be CAD 900 million The surplus for March was revised down from the original CAD 972 million to CAD 231 million.
According to StatCan, the increase was due to an increase in exports of metal, nonmetallic mineral products and energy. Total imports rose 2.8%, surpassing pre-demic levels.
Interestingly, the growth in metal exports includes an increase in the transfer of gold assets from Canadian financial institutions to the U.S. StatCan attributes this to the fact that in times of economic instability, investors prefer to invest in proven stable assets.
Imports, on the other hand, declined for the third month in a row. This is partly attributed to lower supplies of crude oil from the U.S. and Saudi Arabia. The volume of petroleum product imports also contributed to the decline. At the same time, the total volume of goods imported into the country increased by 1%.
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