The deficit on trade in goods expanded $1.1 billion in the second quarter to $3.1 billion, as imports increased. The surplus with the United States was reduced during the quarter as imports grew more than exports. The drop in energy exports to the United States largely offset gains in other categories.
The deficit on trade in services edged up $0.2 billion to $6.2 billion in the second quarter. The deficit on transportation services expanded, as payments for water transport were up in the quarter. The travel deficit was also up slightly. However, this was partly offset by a higher surplus in trade in commercial services, as exports declined less than imports.
The deficit on investment income expanded $0.2 billion to $4.2 billion in the second quarter. Earnings of Canadian direct investors abroad increased $0.4 billion while those of foreign direct investors in Canada were up $0.2 billion. However, payments to foreign holders of Canadian securities advanced $0.3 billion, notably on higher interest paid on private corporate bonds.
The deficit in transactions on secondary income was reduced by $0.5 billion in the second quarter. This largely reflected higher receipts by Canadian insurance companies on reinsurance services provided by foreign insurers, arising from the Alberta flood in June of this year.