Canada Current Account Deficit Widens in Q3

Canada's current account deficit widened by CAD 3.8 billion to CAD 19.3 billion in the third quarter of 2017, slightly below market expectations of a CAD 19.5 billion shortfall. The goods deficit widened for the third quarter in a row, hitting a CAD 8.9 billion, the second highest gap on record.

The goods deficit advanced to CAD 8.9 billion in the third quarter from a CAD 3.6 billion in the prior quarter. It was the third quarter in a row expantion and the second highest deficit recorded, as exports and imports decreased. 

On a geographical basis, the goods deficit with non-US countries went up to CAD 17.0 billion from CAD 1.3 billion, mainly due to deteriorating trade balances with India and the United Kingdom. Meantime, the surplus with the United States fell $2.4 billion to $8.0 billion.

Total exports of goods fell to CAD 131.1 billion from CAD 11.0 billion, following four straight quarters of increases. Exports of motor vehicles and parts went down CAD 3.5 billion, due to work stoppages in the automotive industry and changes to certain models destined for the American market. Exports of energy products fell CAD 2.4 billion as price decreased and also to lower volumes of crude petroleum and natural gas.

After increasing by $10.7 billion over the first half of the year, total imports of goods declined to CAD 140.0 billion from CAD 7.4 billion to $140.0 billion as almost all the commodity sections went down. Metal and non-metallic mineral products declined by $1.3 billion and consumer goods lost $1.2 billion on lower prices.

The non-goods deficit increased slightly to CAD 10.4 billion, mainly due to higher portfolio investment income deficit and higher transfer payments mostly from the government sector.

The services deficit was unchanged at $6.1 billion. The travel deficit rose CAD 0.3 billion, led by a record number of Canadians visiting non-US destinations. In contrast, the surplus in commercial services advanced CAD 0.3 billion, mainly on lower payments of financial services.

Canada Current Account Deficit Widens in Q3

Statistics Canada | Stefanie Moya |
11/30/2017 2:17:50 PM