Canada’s trade surplus soared unexpectedly to a two and a half high of $1.86-billion in June, boosted by record exports and falling imports, Statistics Canada data indicated last Wednesday.
This was the largest surplus since the $2.43-billion recorded in December 2011.
The Bank of Canada has kept its key interest rate frozen at near-record lows since September 2010 and says it will not contemplate an increase until the sluggish economy – in particular the non-energy export sector – picks up. The central bank and market analysts have often predicted that Canada, which sends 75 per cent of all exports to the United States, will benefit as the U.S. economy recovers.
The value of exports rose by 1.1 per cent to a record $45.20-billion on metal and non-metallic mineral products, consumer goods and energy products.
This growth was due entirely to higher export volumes, which increased by 1.0 per cent as prices rose by 0.2 per cent.