Canada's Trade Surplus Widens as Weaker Loonie Boosts Export Values

Canada's trade surplus widened in June as exports increased and imports decreased. The country's weaker loonie helped drive this trend, as a Canadian dollar may now buy more U.S. dollars for its merchandise.

The value of merchandise exports rose 0.4% from May to $77.5 billion, with the volume increasing by 1.1%. This was despite some prices being lower for international buyers. Six out of 11 sectors tracked by Statistics Canada saw increases in export values.

Exports of metal and non-metallic mineral products increased the most by 16.5%, with unwrought gold, silver, and platinum group metals seeing a 27.9% increase. However, energy exports decreased by 10%, including an 11% drop for crude oil exports due to falling global prices.

Nathan Janzen, assistant chief economist at Royal Bank of Canada, noted that imports from the U.S. increased by 3% in June, mainly on higher imports of computers and computer peripherals. This could be a sign of domestic Canadian investment spending.