Canada Current Account Deficit Widens in Q1



Canada's current account gap widened by CAD 3.0 billion to CAD 19.5 billion in the first quarter of 2018 from an upwardly revised CAD 16.5 billion in the previous period and worse than market expectations of a CAD 18 billion shortfall. The goods and service balance recorded the largest deficit since the second quarter of 2016.

The goods deficit advanced by CAD 1.5 billion to CAD 9.0 billion in the first quarter of 2018 from a CAD 7.5 billion in the prior quarter. 

On a geographical basis, the goods gap with non-US countries decreased by CAD 1.3 billion to CAD 16.0 billion in the first quarter, mainly due to lower deficits with Korea and the Netherlands and a higher surplus with the UK. Meantime, the surplus with the United States narrowed by CAD 2.7 billion to CAD 7.1 billion.

Total exports of goods increased by CAD 1.5 billion to CAD 139.3 billion in the first quarter of the year. Exports of energy products edged up by CAD 2.2 billion, mostly on higher crude petroleum prices and volumens. 

Total imports of goods rose by CAD 3.0 billion to CAD 148.2 billion. Imports of motor vehicles and parts went up by CAD 1.5 billion, boosted by higher volumes. Also, purchases of energy products and basic and industrial chemical, plastic and rubber increased by CAD 0.7 billion each one.

The non-goods deficit narrowed by CAD 0.2 billion to CAD 6.2 billion in the first quarter from a CAD 6.4 billion in the fourth quarter of 2017, mainly due to a higher commercial services surplus. The surplus on commercial services rose by CAD 0.3 billion, as exports advanced more than imports. These gains were led by stronger financial services. The travel deficit remained at CAD 3.7 billion, as higher receipts from foreigner visitors were offset by the Canadian travelers spending in the US.

Canada Current Account Deficit Widens in Q1


Statistics Canada | Stefanie Moya | stefanie.moya@tradingeconomics.com
5/30/2018 1:10:22 PM