Canada Posts January Trade Surplus As Exports Jump

Canada posted a Can$1.4 billion (US$1.1 billion) trade surplus in January -- its largest in seven years as exports rose sharply, the national statistical agency said Friday.

The data defied expectations of ongoing deficits as the pandemic continues to ravage parts of the economy.

A spike in exports of aircraft, gold bars, crude oil and lumber -- "largely due to stronger trade with the United States," according to Statistics Canada -- was behind the surprise turnaround.

Following steep declines at the onset of the Covid-19 outbreak last year, exports to its southern neighbor were for the first time in January higher than February 2020 levels.

As a result, Canada's trade surplus with the United States more than doubled to Can$6.2 billion (US$4.9 billion).

Total exports rose 8.1 percent in January to Can$51.2 billion, said Statistics Canada. One third of this increase was driven by price growth.

Exports of aircraft more than doubled, attributable to a Canadian airline retiring a large number of planes from its fleet and sending them to the United States.

Individual retail investors in the United States scooped up a batch of Canadian gold bars.

Crude oil exports also rose, and lumber exports hit a record high.

Following two consecutive months of decline, total imports, meanwhile, increased 0.9 percent in January to Can$49.8 billion.

Imports of diesel fuel as well as electronics, computers and peripherals were also up.