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% in January to $61.8 billion.
The move came as imports of consumer goods fell 7.1% due in large part to a 19.0% plunge in imports of pharmaceutical products. Excluding pharmaceutical products, imports of consumer goods were down 3.8% in January.
Meanwhile, total exports fell 1.7% to $62.3 billion as exports of metal and non-metallic mineral products lost 6.2%. Exports of aircraft and other transportation equipment and parts also dropped 13.9% in January.
In volume terms, total imports fell 4.1% in January, while exports dropped 1.8%.
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% and exports dropped 4.2%.
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% in January and exports fell 1.0%.
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% to $17.0 billion, while imports of services rose 1.5% 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.