The goods deficit narrowed by CAD 1.9 billion to CAD 7.2 billion in the fourth quarter of 2017, after three consecutive increases. Considering full 2017, the goods deficit recorded CAD 23.9 billion, easing from a record deficit of CAD 25.9 billion in 2016.
On a geographical basis, the goods deficit with non-US countries increased by CAD 0.7 billion to a record CAD 17.6 billion in the fourth quarter, as trade balances deteriorated with the European Union countries and China, moderated by lower deficits with Japan and Mexico. Meantime, the surplus with the United States rose by CAD 2.6 billion to CAD 10.5 billion.
Total exports of goods advanced by CAD 6.4 billion to CAD 137.7 billion in the last quarter of 2017, following a drop of CAD 10.7 billion in the previous quarter. Exports of energy products increased by CAD 2.8 billion, mainly on higher crude petroleum prices. Total exports of goods were up CAD 28.0 billion in 2017, mainly due to stronger exports of energy products.
Total imports of goods widened by CAD 4.5 billion to CAD 144.9 billion. Imports of energy products rose CAD 1.2 billion as prices of crude petroleum increase. Aircraft and other transportation equipment and parts advanced CAD 1.2 billion, mostly on higher imports of aircraft. For 2017, imports grew by CAD 26.1 billion.
The non-goods deficit narrowed by CAD 0.4 billion to CAD 9.2 billion in the fourth quarter. Higher profits on Canadian direct investment abroad contributed the most to this decline. The deficit on investment income fell by CAD 0.8 billion to CAD 1.5 billion. Profits earned by Canadian direct investors went up CAD 1.7 billion. This was partially offset by higher income earned by foreign investors, both direct and portfolio, on their financial assets in Canada. The overall deficit on international trade in services rose by CAD 0.3 billion to reach CAD 6.5 billion. For the year 2017, the services deficit increased by CAD 1.8 billion to CAD 25.1 billion, mostly due to higher payments of financial services, namely with the United Kingdom, and transport services with non-US countries. Despite a record number of foreign tourists during the year, the travel deficit advanced in 2017 as spending by Canadians travelling abroad was higher than receipts from non-residents travelling to Canada.