© Reuters. A shipping container is unloaded at the Port of Montreal in Montreal, Quebec, Canada, May 17, 2021. REUTERS/Christinne Muschi
By Ismail Shakil and Fergal Smith
OTTAWA (Reuters) – Canada’s exports rose 2.5% in April and hit an all-time high in volume, while imports fell 0.2% in part due to a drop in energy products, the Statistics Office said. Canadian millet said Wednesday.
As a result, the country’s trade surplus with the world grew to C$1.94 billion ($1.45 billion) in April, more than double analysts’ forecast for a 900 million surplus. Canadian dollar. March’s surplus was revised down to C$231 million, from C$972 million previously.
The Canadian economy has largely performed better than expected despite the Bank of Canada raising interest rates at a record pace between March 2022 and January this year.
That has led to a higher chance for another rate hike when the Bank of Canada announces its decision at 10 a.m. ET (14:00 GMT) on Wednesday.
The strong increase in exports was attributed to metal and non-metallic mineral products as well as energy products, Statscan said. In terms of volume, exports rose 2.8% and surpassed pre-COVID-19 levels.
The agency said the increase in exports of metal products includes more transfers of gold assets from Canadian financial institutions to the United States, in a sign of economic uncertainty that is favoring investors. prefer safe haven metals.
Imports fell for a third straight month, partly due to falling crude exports from Saudi Arabia and the United States. Imports of refined petroleum products also contributed to the decline. By volume, total imports increased by 1%.
Last week, data showed that the Canadian economy benefited from favorable international trade and expanded faster than expected in the first quarter ending in March and is likely to accelerate further in April. Annual inflation also increased more than expected in April, accelerating for the first time in 10 months to 4.4%, more than double the BoC’s 2% target.
($1 = 1.3394 Canadian dollars)