Prime Highlights:
Exports of energy products rose by 9.5%, boosting overall trade performance.
Imports grew by 2.3%, slower than the 2.8% rise in November.
Key Background:
Canada experienced its first trade surplus in ten months in December, with a $708 million surplus, as exports outpaced imports. This result, reported by Statistics Canada, marked a significant shift from a revised deficit of $986 million in November. The surplus was driven by a 4.9% increase in exports, particularly to the U.S., fueled by robust demand from American businesses and anticipation of potential tariffs.
The increase in exports was largely attributed to higher shipments of energy products, including crude oil, bolstered by rising global prices and a weakening Canadian dollar. U.S. demand, in particular, contributed to the strong performance, as businesses in the U.S. stockpiled inventory ahead of possible tariffs under the previous administration. Additionally, Canada’s imports rose by 2.3%, a more moderate increase compared to November’s 2.8%.
Canada’s trade surplus with the U.S. continued to expand, reaching $11.3 billion in December, a 5% increase. This growth was primarily driven by the export of energy products and higher oil prices. In contrast, Canada’s imports from the U.S. fell by 1.5%. For the year 2024, Canada’s merchandise trade surplus with the U.S. totaled $102.3 billion, though it declined slightly from $108.3 billion in 2023. When excluding energy products, Canada’s trade balance with the U.S. shifted to a $43 billion surplus.
In total, the value of goods traded between Canada and the U.S. surpassed $1 trillion for the third consecutive year. Exports to the U.S. accounted for 75.9% of Canada’s total exports, contributing significantly to the Canadian economy. Energy products alone accounted for a major portion of December’s export growth, increasing by 9.5%. However, Canada’s trade deficit with countries outside the U.S. widened to $10.6 billion, reflecting a broader global trade imbalance. This surplus marks a notable recovery in Canada’s trade balance, driven by strong export growth and favorable energy prices.
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