Another trade surplus for Canada
The Canadian Press - Apr 07, 2021 - Business Buzz

Photo: The Canadian Press

OTTAWA — Canada posted a merchandise trade surplus for a second consecutive month in February, the first time that’s happened since late 2016.

Statistics Canada said Wednesday the trade surplus for the month was $1 billion, down from a revised surplus of $1.2 billion in January, as both exports and imports fell.

TD Bank economist Omar Abdelrahman said the pullback in exports for February was not surprising following a strong January and unusually strong gains in the volatile aircraft category.

“Similarly, weakness was expected in auto production due to the global shortage in semiconductor chips,” Abdelrahman wrote in a report.

However he said the overall outlook for Canadian trade, exports in particular, has brightened in 2021.

“Merchandise exports should remain supported by firm commodity prices/demand, the reopening of economies, and a strengthening economic outlook for Canada’s largest trading partner, the U.S.,” Abdelrahman wrote.

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