Trade on the Comeback Trail: Canada’s Two-Year International Trade Outlook

Document Highlights

Supply bottlenecks and shortages will persist well into 2022 but will not prevent Canada’s merchandise exports sector from getting back on track over the near term.

Softer domestic demand will moderate merchandise import activity over the next two years.

With exports outperforming imports over the next two years, net trade will again become a positive contributor to real GDP growth.

Trade in services will lead the charge in growth over the next two years.

Canada’s current account gets a big lift from the real trade balance and terms of trade in 2022.