Source: The Canadian Press

Canada’s merchandise exports grew 2.8% in February on the strength of industrial goods and materials, outpacing a 0.9% increase in imports.

As a result, Canada’s trade surplus with the world widened to $1.4 billion in February from $754 million in January.

Statistics Canada reports exports increased to $34 billion in February from $33.1 billion in January, as prices and volumes each grew 1.4%.

This represented the fifth increase in export volumes and prices in six months and while most export sectors grew in February, industrial goods and materials accounted for over half the export growth.

Imports rose to $32.6 billion from $32.3 billion, as volumes increased 1% while prices declined 0.2.

Excluding the energy products sector, imports would have increased 2.6% in February.

On the strength of automotive products, exports to the United States increased 2% and imports grew 1.2. As a result, Canada’s trade surplus with the United States widened to $4.4 billion in February from $4.2 billion in January.

Exports to countries other than the United States rose 5.2%, as exports to all principal trading areas except Japan increased in February.

Imports from countries other than the United States grew 0.2% due to higher imports from Japan. Consequently, Canada’s trade deficit with these countries narrowed to $3 billion in February from $3.4 billion in January.