Canada Current Account Deficit Almost Unchanged in Q2

Canada's seasonally adjusted current account deficit was largely unchanged in the second quarter of 2014, edging down $0.2 billion to $11.9 billion. This reflected a slight increase in the deficit on trade in goods and services, which was more than offset by a lower investment income deficit.

The balance on international trade in goods posted a $1.7 billion surplus in the second quarter, down $0.1 billion from the previous quarter. Both exports and imports strengthened during the quarter. On a geographical basis, the trade surplus with the United States increased by $1.0 billion to $14.5 billion as exports reached a record level. The trade deficit with other countries expanded, led by a higher deficit with European Union countries.

Total exports of goods increased by $3.9 billion to a record $132.3 billion in the second quarter. Exports of motor vehicles and parts led the growth, up by $1.9 billion. This increase largely reflected stronger volumes of passenger cars and light trucks sold abroad, mainly in the United States.
Farm, fishing and intermediate food products were up $0.7 billion to $8.1 billion, with higher volumes of canola accounting for half of the increase. Forestry products rose $0.6 billion to $9.3 billion on higher volumes of lumber and pulp and paper. This was the highest such level of exports since the third quarter of 2007.

Energy products were down $1.2 billion to $33.6 billion. Crude petroleum exports increased $2.0 billion on higher prices and volumes. Natural gas lost $2.4 billion, about two-thirds accounted for by lower prices following strong price gains in previous quarters.

Overall imports of goods increased $4.0 billion to $130.7 billion. Imports of motor vehicle and parts were up $1.6 billion to $22.7 billion as cars, trucks, and parts all increased on higher volumes. Consumer goods advanced $1.2 billion to $26.8 billion, with gains widespread across several commodities. Chemical, plastic and rubber products increased $1.0 billion on stronger volumes. Energy products declined $0.8 billion to $10.8 billion, mainly on lower volumes of crude petroleum and refined petroleum products. Imports of natural gas increased by $0.4 billion to a record high $1.7 billion.

The deficit on international transactions in services edged up $0.1 billion to $6.3 billion in the second quarter. The surplus on commercial services was unchanged at $0.9 billion, as both receipts and payments advanced.

The deficit on cross-border investment income flows was down $0.5 billion to $5.8 billion in the second quarter, as receipts were up by more than payments.

Canada Current Account Deficit Almost Unchanged in Q2

Statistics Canada | Joana Taborda |
8/28/2014 1:53:13 PM