Oil and gold exports help Canada swing to surprise trade surplus

OTTAWA, Aug 6 (Reuters): Canada recorded a surprise trade surplus of C$638 million ($461 million) in June, as oil and gold helped exports overtake imports for the first time in 4 months, Statistics Canada data showed on Tuesday.

Analysts polled by Reuters had forecast a C$1.84 billion trade deficit. May's trade deficit was revised to C$1.61 billion from a C$1.93 billion deficit reported initially.

Total exports jumped 5.5 per cent in June, mainly due to crude oil and unwrought gold, while imports were up 1.9 per cent, driven by cars and light trucks, data showed. By volume, exports rose 3.8 per cent in June, while imports increased by 1.3 per cent.

The Bank of Canada lowered its benchmark rate for a second straight month in July, and indicated its focus was shifting to boosting the economy.

The bank expects growth to pick up in the second half of 2024, led by stronger exports and a recovery in household spending as borrowing costs ease. Canada's monthly GDP growth rate is expected to slow to 0.1 per cent in June from 0.2 per cent in May, data showed last week.

In June, energy exports rose 11.7 per cent, helped by higher shipments as well as prices of crude oil, Statscan said.

The rise in crude oil exports was partly due to higher shipments to Asian countries, reflects increased deliveries from via the recently-expanded Trans Mountain pipeline, the agency said.

The rise in total imports was led by motor vehicles and parts as well as consumer goods.