Canada Records Sharpest CA Gap in 2 Years

2023-02-27 13:33 By Andre Joaquim 1 min. read

Canada recorded a seasonally adjusted current account deficit of CAD 10.64 billion in the fourth quarter of 2022, the widest since the third quarter of 2020, and increasing from the CAD 8.42 billion gap in the previous period.

The sharper deficit was a reflection of the deterioration in the investment income balance (CAD -5.28 billion vs -2.55 billion), widening the country’s primary income deficit (CAD -6.77 billion vs CAD -4 billion) as profits earned by foreign direct investors jumped by nearly CAD 1 billion to CAD 18.5 billion), while profits earned by Canadian direct investors abroad deteriorated.

On top of that, the goods surplus narrowed (CAD 1.67 billion vs 2.47 billion) due to lower energy prices.

On the other hand, the services gap also narrowed (CAD -4.45 billion vs CAD -6.64 billion).



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