Canada records $1.04-billion trade surplus in February
Canada’s trade surplus with the world narrowed in February to C$1.04 billion ($824 million) as a global shortage of semiconductor chips hit both imports and exports, Statistics Canada said on Wednesday.
It was the first time since late 2016 that the trade balance was in surplus for two consecutive months, Statistics Canada said.
Exports were down 2.7%, with exports of motor vehicles and parts decreasing by 10.2% as assembly plants were forced to slow production because of the lack of semiconductor components, Statscan said.
“The world is firing up, as we know, and there are supply constraints all over the place,” said Peter Hall, chief economist at Export Development Canada.
“It’s already ricocheting through supply chains,” he added, pointing to lower exports of metal ores and metal products.
Energy exports were a bright spot, rising 18.3%, their highest level since December 2019. This was driven by higher prices caused by extreme weather and a massive power outage in Texas.