Canada’s economy was in a trade surplus for the third straight month in May and exports were up for the fourth month, Statistics Canada reported Tuesday.

This three-month stretch was during the same period when the Iran war sent shockwaves through global supply chains for key materials and resources, which seems to have benefited Canada’s export economy.

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“With the latest merchandise trade numbers, Canada’s export story is becoming more balanced,” said economist Jasleen Trehan at the Business Data Lab and Canadian Chamber of Commerce in a statement.

“The next challenge is making sure this momentum is driven by stronger export volumes, not just higher prices. That’s what will determine whether today’s gains translate into long-term economic growth or not.”

The Iran war brought container ship traffic near the Strait of Hormuz region to a near standstill as Iran threatened to attack any ships attempting to pass through the narrow shipping channel without permission during the conflict, jeopardizing about a fifth of the world’s oil and other resource supplies.

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Statistics Canada says there was a more than 50 per cent increase in exports of aluminum products in May compared to April, the majority of which were sent to the Netherlands, Italy and Greece. In total, those aluminum exports were valued at $1.2 billion, which was the highest since the record seen in May 2022.

Although Canada exported more goods to international partners in May compared to the previous month, exports to the U.S. still increased by 1.5 per cent in May, which marked the fourth consecutive increase. At the same time, imports from the U.S. fell by 1.4 per cent, which contributed to a wider trade surplus with the U.S. totalling $11.6 billion in the month.

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