Canada's merchandise trade surplus expanded to $4.2 billion in May, marking the largest surplus in four years, as exports reached a record high, according to Statistics Canada. This surplus increased from $3.4 billion in April, which was revised from an initial estimate of $2.7 billion.
Total exports rose by 0.9% in May, achieving the fourth consecutive monthly increase and reaching a record $77.1 billion. A significant contributor to this growth was the 16.1% rise in exports of metal ores and non-metallic minerals, driven by higher sulfur exports and new shipments of gold ores and concentrates to China.
Imports edged down by 0.2% to $72.9 billion, as lower imports of metal and non-metallic mineral products more than offset other gains. In volume terms, total exports were essentially unchanged, while imports rose by 0.4%.
Regionally, Canada's trade surplus with the United States widened to $11.6 billion, the largest since January 2025, as exports to the U.S. rose by 1.5% and imports fell by 1.4%. This compared with a trade surplus of $10.3 billion in April.
Economists suggest that while the current surplus is notable, Canadian trade surpluses can fluctuate with changes in commodity prices. Some analysts view this surplus as a positive sign for the Canadian economy, indicating a rebound from previous economic challenges.
Overall, the May trade data reflects a strengthening Canadian economy, with robust export performance and a favorable trade balance.