Alberta exports take another hit in May
Compared to May 2019, monthly exports were down by $6.4 billion
By ATB Economics 3 July 2020 1 min read
Despite some thawing of the global economic freeze brought on by the pandemic, Alberta’s international merchandise exports continued to cool in May.
The total value of exports from the province fell by $1.2 billion (-19 per cent) in May. This comes on the heels of a 29 per cent drop in April. (All data are on a customs basis.)
Compared to May 2019, monthly exports were down by $6.4 billion (-55 per cent).
Energy exports are the main culprit in the overall decline, down 33 per cent in May on a monthly basis ($1.3 billion) and by 69 per cent year-over-year ($6.1 billion).
Exports to our largest trading partner—the United States—were down 61 per cent on a year-over-year basis. Sales to countries other than the U.S. were down by a more modest 3 per cent.
Excluding Alberta, exports from the rest of Canada increased in May by 11 per cent, but were still down by 34 per cent compared to a year ago. Exports increased between April and May in every province except Alberta.
Also on the trade front, Canada Day marked the official start of the United States, Mexico and Canada Agreement on trade. Although the new trading regime won’t put an end to all trade issues among the three countries, it provides at least some certainty in a particularly uncertain time.