CBC News: Feb 11, 2011
Exports rose 9.7% in December to $37.8 billion while imports remained relatively flat, pushing Canada’s trade surplus to $3 billion in December.
A 16.5% gain in energy exports was the leading factor, Statistics Canada said. Energy exports rose to $8.6 billion, the third consecutive monthly gain.
Volumes, up 6.6%, increased in most sectors. In dollar terms, prices increased by 2.9%.
The value of imports edged up 0.7% to $34.8 billion. The trade surplus is now at its highest level since February. The $3 billion figure was a reversal of the $115 deficit the country posted in November.
“While the Canadian consumer is still going strong, the sharp divergence in exports versus imports points to a rotation from domestic-led economic growth toward export-led growth,” TD Bank economist Diana Petramala said of the results, in a note.
Energy products exports rose 25.1% to $8.6 billion, the third consecutive monthly gain, with volumes accounting for almost two-thirds of the increase.
But oil was not the only gainer. Exports of industrial goods and materials increased 7% to a record high of $10.3 billion, as exports of precious metals and copper ores reached unprecedented levels. Prices in the sector rose 4.5%, while volumes increased 2.4%. Exports of precious metals rose more than 25% during the month and have more than doubled since January 2010. Exports of nickel ores and copper ores also increased in December, reversing large November declines.
Exports of machinery and equipment increased 8.2% to $6.9 billion, as volumes rose 8.6%. Exports of aircraft, engines, and parts accounted for over three-quarters of the sector’s gain.
Exports of agricultural and fishing products increased 7.6% to $3.5 billion. Gains throughout the sector were led by higher exports of wheat, which have been rising for five consecutive months. Wheat prices have been trending upwards since April 2010.
Forestry products exports rose 9.7% to $2 billion, as volumes increased 10.8%. Exports of wood pulp and other wood products grew to $621 million in December, the highest value since August 2007, reflecting higher demand from China.
Exports to the United States rose 10.8% to $26.7 billion, the highest value since November 2008, while imports were up 2.3%. Consequently, Canada’s trade surplus with the United States increased from $3 billion in November to $5.1 billion in December, the largest trade surplus since October 2008.
Exports to countries other than the United States increased by 7.3%, the sixth consecutive monthly gain, while imports declined 1.9%. Canada’s trade deficit with countries other than the United States declined from $3.1 billion in November to $2.1 billion in December.
“Canada’s trade sector is certainly benefiting from strong global demand for industrial goods and materials and commodities, as strong growth in the U.S. economy has provided a boon to global industrial production,” Petramala said.
