The trade balance in Canada turned back into deficit in May and analysts at the National Bank of Canada expect it to remain like that in the coming months. According to them, exports should continue to pick up.
Key Quotes:
“The progression of international goods trade was only slightly up in May thanks to an increase in imports. The latter were propelled by metal/non-metallic products which reached an all-time high and come off very elevated prices for these commodities.”
“Looking back at the big picture, total trade (exports + imports) was up a tepid 0.2% in May.”
“The terms of trade continued to improve in the month and now sit at their highest level since July 2008 and not far off from the record.”
“Imports should continue to be strong thanks to demand stemming from nationwide reopening and one of the best vaccination campaigns in the world. Though, exports should also pick up again as production capacity increases and global demand returns thanks to improving sanitary situations, we expect the trade balance to remain in deficit in the coming months.”
