Canada reports a C$1.72 billion surplus in six months
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Canada has reported a budget surplus of C$1.72 billion (equivalent to $1.29 billion) during the first six months of the 2022/23 financial year. The increased tax revenues generated this surplus, according to the finance ministry.
Canada reports a C$1.72 billion surplus
The data on the budget surplus was released by the finance ministry on Friday last week. The data showed that Canada’s budget figures for this year were significantly better when compared to last year.
Between April and September 2021, Canada reported a C$68.57 billion deficit, showing that the current figures are a significant improvement. The year-to-date revenues of the company also increased by 18.60% following a significant increase in the income streams.
The program expenses also dropped 17.9% amid a notable drop in transfers to businesses and individuals. The finance ministry also attributed the budget surplus and drop in expenses to the dropping support related to COVID-19.
The statement from the ministry further said that “the government’s 2022-23 financial results continue to improve compared to 2021-22 as the fiscal impact of the COVID-19 crisis and the unprecedented level of temporary COVID-19 response measures wane.”
Canada trading volumes
Canada has also released its trading data for September. The data shows that exports to the United States during the month dropped 0.4%, representing the third consecutive monthly drop. On the other hand, imports had increased by 0.4%.
The trade surplus in Canada within the United States also dropped from $10.2 billion in August to $9.8 billion in September. This was the lowest surplus since December last year.
Despite exports to the United States dropping during the month, exports to other countries increased as they registered a 7% uptrend. This was the highest increase since May 2022. Exports to the UK, China, and Hong Kong reported the highest gains.
On the other hand, imports from countries outside the US increased by 0.5%. The largest volume of exports was from Italy, Brazil, and Mexico. A drop in imports from Belgium and Switzerland offset these imports.
The economic activity globally has slowed down significantly amid growing concerns around inflation. The IMF has forecasted that global growth will slow down from 6% in 2021 to 3.% in 2022. The Bank of Canada has also revised Canada’s GDP growth downward by around 0.25% and dropped it to below 1% in 2023.
