Canada Current Account Deficit Widest Since 2016


Canada's current account gap widened by CAD 0.7 billion to CAD 17.3 billion in the first quarter of 2019 from a upwardly revised CAD 16.6 billion in the previous period and compared to market expectations of a CAD 18 billion shortfall. It was the biggest current account gap since the second quarter of 2016, reflecting a higher trade in goods and services deficit, and moderated by a lower investment deficit.

The goods deficit increased by CAD 1.2 billion to CAD 9.1 billion, following a CAD 7.9 billion in the previous quarter. Total exports of goods rose by CAD 2.0 billion to CAD 146 billion, mainly due to an increase in sales of energy products (CAD +3.5 billion) on higher crude petroleum prices (+29%). These increases were partially offset by lower exports of farm, fishing and intermediate food products, notably canola and other crop products. Imports of goods went up by CAD 3.2 billion to CAD 155.2 billion, amid higher purchases of aircraft & other transport equipment (CAD +2.0 billions) on stronger imports of aircraft. Motor vehicles and parts rose CAD 1.3 billion while pharmaceutical and medical products accounted for most of the CAD 0.7 billion increase in imports of consumer goods.

On a country basis, the goods deficit with China increased by CAD 2.1 billion to CAD 6.1 billion, on lower exports of farm, fishing and intermediate food products. Meanwhile, the trade surplus with the United States went up by CAD 2.4 billion, led by higher exports of energy products.

The services deficit remained at CAD 6 billion in the first quarter of 2019, as a larger travel deficit was offset primarily by a higher commercial services surplus.

The deficit on primary income, which covers investment income on international assets and liabilities and compensation of employees, declined by CAD 0.2 billion to CAD 1.2 billion in the first quarter of 2019. Profits earned on direct investment abroad increased CAD 0.1 billion to CAD 5.9 billion, and were mostly responsible for the lower deficit since 2014.

Canada Current Account Deficit Widest Since 2016


Statistics Canada | Rafael Gonzalez | rafael.gonzalez@tradingeconomics.com
5/30/2019 3:22:27 PM