Clouds keep getting darker for exports
Lower oil and gas prices have dragged down Alberta's export revenue
By Siddhartha Bhattacharya, ATB Economics 13 April 2023 1 min read
According to new Statistics Canada data, export activity in Alberta has retreated for the second month in a row.
The value of Alberta’s merchandise exports declined by $933 million (-6.0%) in February, following a similar drop in January.*
Energy exports, triggered by prices, continue to define the trajectory for Alberta’s export revenues.
With oil prices averaging nearly US$115 per barrel in June 2022, Alberta’s merchandise exports reached their highest level on record.
Conversely, lower oil prices have pushed Alberta’s export revenues to their lowest level in twelve months.
Despite coming down from previous highs, export activity remains bullish compared to the early part of last year.
On a year-to-date basis, the value of international merchandise exports out of Alberta was $2.1 billion (7.3%) higher than in 2022.
It was an underwhelming month across the country with export revenue down in eight out of ten provinces.
Led by central Canada, which drove over half of the aggregate pullback, national export revenues fell by $4.7 billion (-7.9%) in February.
*With the release of the February 2023 trade data, Statistics Canada has heavily revised the January 2023 numbers that were cited in last month’s Owl on this topic.
Answer to the previous trivia question: The current $5 bill features a portrait of Sir Wilfrid Laurier (Prime Minister, 1896-1911).
Today’s trivia question: In what year was the managed trade agreement known as the Canada-US Auto Pact signed?