<div>Statistics Canada says the country's merchandise trade balance shifted to a surplus in August helped by strong growth in exports of unwrought gold and crude oil. Gantry cranes sit idle as a container ship is docked at port during a work stoppage, in Vancouver, on Wednesday, July 19, 2023. THE CANADIAN PRESS/Darryl Dyck</div>

OTTAWA - Canada's merchandise trade balance shifted to a surplus in August, helped by strong growth in exports of unwrought gold and crude oil, Statistics Canada said.

The agency said Thursday that Canada posted a trade surplus of $718 million in August compared with a revised deficit of $437 million in July.

BMO economist Shelly Kaushik said it was the first surplus since April.

"Energy prices propelled a modest surplus in Canada’s merchandise trade account," Kaushik wrote in a report.

"But, stronger-than-expected volumes suggest merchandise trade could add to third quarter growth. Even so, the economy is expected to slow meaningfully in the second half of the year."

The merchandise trade surplus came as total exports rose 5.7 per cent to $64.6 billion.

Exports of metal and non-metallic mineral products rose 29.1 per cent in August to a record $8.5 billion, boosted by exports of gold to the United States. Meanwhile, higher prices helped lift energy product exports 14.6 per cent to $14.5 billion.

Total imports increased 3.8 per cent in August to $63.8 billion as imports of industrial machinery, equipment and parts rose 7.5 per cent to $7.8 billion in the month.

In volume terms, exports rose three per cent in August compared with July, while imports gained 1.2 per cent.

Statistics Canada said the country's trade deficit with countries other than the United States was $9.7 billion in August compared with $8.6 billion in July as exports to countries other than the United States rose 7.7 per cent, but imports gained 9.8 per cent.

Canada's trade surplus with the United States increased to $10.4 billion compared with $8.2 billion in July as exports to the United States rose 5.2 per cent and imports gained 0.6 per cent.

In a separate release, Statistics Canada says the country's international trade in services deficit increased to $1.5 billion in August compared with $1.2 billion in July as service exports fell 0.7 per cent to $15.0 billion and service imports rose 0.7 per cent to $16.4 billion.

When the country's international trade in goods and services are combined, Canada's trade deficit with the world was $743 million in August compared with $1.7 billion in July.

This report by The Canadian Press was first published Oct. 5, 2023.

News from © The Canadian Press, 2023