Canadian Current Account Deficit Narrows to Lowest This YearErik Hertzberg
Canada’s current account deficit narrowed in the third quarter to its smallest level this year on a jump in merchandise exports.
The shortfall was C$16.2 billion in the three-month period, Statistics Canada said Monday in Ottawa, down from C$16.6 billion. The figure was greater than the C$15.2 billion median of 13 estimates in a Bloomberg survey of economists.
Canada’s trade statistics are getting a lift from a weaker dollar that has helped give a boost to the nation’s exporters. The Canadian dollar has fallen 13 percent this year, making it one of the worst performers among major currencies.
The current account is the broadest measure of trade because it includes services and investment income.
The nation’s deficit in goods trade narrowed to C$10.7 billion from C$12.1 billion the previous quarter. The services deficit also narrowed to C$5.6 billion from C$5.8 billion. That was offset by a widening investment income deficit.
The agency revised its second quarter current account figure to a deficit of C$16.6 billion, from C$17.4 billion previously.
The data also showed a jump in foreign direct investment activity in Canada. Foreign mergers and acquisitions in Canada were the highest in almost eight years at C$18.4 billion in the quarter.