Statistics Canada says the country posted a merchandise trade surplus of $496 million in January as imports fell to their lowest level since February 2022. A shipping container is loaded onto a ship in the Port of Montreal, Tuesday, Sept.19, 2023. THE CANADIAN PRESS/Christinne Muschi

OTTAWA - Canada posted a merchandise trade surplus of $496 million in January as imports fell to their lowest level since February 2022.

Statistics Canada said Thursday the surplus came after a revised trade deficit of $863 million in December compared with an initial report of a $312-million deficit for the final month of 2023.

However, BMO economist Shelly Kaushik noted the details of the report were weak as both exports and imports declined.

"The figures are in line with expectations for economic growth to remain soft to start the year," Kaushik wrote in a brief note to clients.

Statistics Canada said total imports dropped 3.8 per cent in January to $61.8 billion.

The move came as imports of consumer goods fell 7.1 per cent due in large part to a 19.0 per cent plunge in imports of pharmaceutical products. Excluding pharmaceutical products, imports of consumer goods were down 3.8 per cent in January.

Meanwhile, total exports fell 1.7 per cent to $62.3 billion as exports of metal and non-metallic mineral products lost 6.2 per cent. Exports of aircraft and other transportation equipment and parts also dropped 13.9 per cent in January.

In volume terms, total imports fell 4.1 per cent in January, while exports dropped 1.8 per cent.

Regionally, Canada's merchandise trade deficit with countries other than the United States was $8.3 billion in January compared with a deficit of $9.4 billion in December as imports fell 7.3 per cent and exports dropped 4.2 per cent.

Canada's merchandise trade surplus with the United States was $8.8 billion in January compared with a surplus of $8.6 billion in December as imports from the United States fell 1.7 per cent in January and exports fell 1.0 per cent.

In a separate report, Statistics Canada said the country's monthly international trade in services deficit was $1.3 billion in January compared with a deficit of $700 million in December.

Exports of services fell 1.6 per cent to $17.0 billion, while imports of services rose 1.5 per cent to $18.3 billion.

When international trade in goods and services were combined, Statistics Canada said the country's total trade deficit with the world came in at $779 million in January compared with $1.6 billion in December.

This report by The Canadian Press was first published March 7, 2024.

News from © The Canadian Press, 2024