Canada's Merchandise Trade Surplus Reaches Four-Year High

Canada's merchandise trade surplus reached an impressive four-year high in June, surpassing expectations with a value of C$3.86 billion.

The National Bank of Canada's Jocelyn Paquet reported that exports rose for the fifth consecutive month to a record C$77.5 billion, driven by strong shipments of gold and copper.

However, energy exports fell due to declining commodity prices amid easing tensions in the Middle East, resulting in a 10% decline in this sector.

Quarterly data suggests that merchandise trade made a significant contribution to Q2 Gross Domestic Product (GDP) growth, with exports growing at a much faster pace than imports (+28.5% q/q ann.) compared to +10.6% for imports.