Canada’s trade performance continued to improve in May, with exports reaching an all-time high and the country’s merchandise trade surplus climbing to its strongest level in four years.
According to Statistics Canada, Canada recorded a $4.2 billion trade surplus during the month, up from $3.4 billion in April. The previous month’s figure was also revised upward after initially being estimated at $2.7 billion.
Exports rose 0.9% to a record $77.1 billion, marking the fourth straight month of growth. The increase was largely driven by higher shipments of metal ores and non-metallic minerals, which jumped 16.1% thanks to stronger sulphur exports and new shipments of gold ores and concentrates to China.
While mining products performed well, the energy sector had a more mixed month. Exports of energy products fell 2%, mainly because lower shipment volumes caused crude oil exports to decline 5.4%.
That drop was partly offset by strong gains elsewhere. Exports of nuclear fuel surged 55.1%, while natural gas exports increased 7.4% and refined petroleum products rose 4.6%.
Imports, meanwhile, slipped slightly by 0.2%, bringing the total value of goods imported into Canada to $72.9 billion. Lower imports of metal and mineral products outweighed increases in several other categories.
One area that did see stronger demand was consumer goods. Imports in that category rose 3.5%, helped by a sharp increase in batteries and battery chargers arriving from China.
In terms of actual shipment volumes, exports were virtually unchanged from April, while import volumes edged up 0.4%.
Canada also strengthened its trading relationship with the United States. The country’s trade surplus with its biggest trading partner expanded to $11.6 billion, the highest since January 2025. Exports to the U.S. rose 1.5%, while imports from the U.S. fell 1.4%.
Trade with countries outside the United States remained negative, with the deficit widening slightly from $6.9 billion in April to $7.4 billion in May.
When both goods and services are included, Canada’s overall trade surplus reached $3.8 billion, compared with $3.2 billion the month before.
For Robert Kavcic, Senior Economist at BMO, the latest figures suggest Canada’s economy is continuing to recover. He said trade balances can swing fast, especially when oil prices are volatile, but believes stronger exports should give a solid boost to economic growth in the second quarter.
May’s figures are a good sign for Canada’s trade sector, with record exports helping to compensate for tepid performance in some industries and reinforcing signs that economic activity is gaining momentum after a sluggish start to the year.
