March trade surplus widens to $627M

A surge in exports helped drive Canada's trade surplus with the rest of the world to $627 million in March.

That's well above the $356 million from February, as most sectors posted gains, Statistics Canada said Wednesday. It was the fourth consecutive monthly surplus.

Exports increased 3.5 per cent while imports grew 2.8 per cent.

Exports have generally been trending upwards since May 2009. Higher volumes have accounted for almost two-thirds of the growth during that period.

'At least it is a surplus, and the fourth in a row' —BMO economist Jennifer Lee

Export gains were led by energy products and industrial goods and materials.

"It is all about energy as excluding energy results in a trade deficit of $4.8 billion," BMO economist Jennifer Lee said.

Imports from the United States rose 3.2 per cent in March, mainly due to higher imports of automotive products, while exports rose by 1.9 per cent.

The trade surplus with the United States narrowed to $4.8 billion in March from $5 billion in February.

Exports to countries other than the United States rose 7.8 per cent in March, largely due to higher shipments to the European Union. During the same period, imports grew 2.1 per cent.

The trade deficit with countries other than the United States declined to $4.2 billion from $4.7 billion in February.

Overall, Lee called the showing "a very disappointing result."

"But at least it is a surplus, and the fourth in a row," she said.