Canada Current Account Deficit Narrows in Q2

The current account gap in Canada declined to CAD 17.4 billion in the second quarter of 2015 from an upwardly revised CAD 18.2 billion in the previous period, as higher exports in June helped to reduce the trade deficit for a quarter.

The deficit on goods was reduced by $0.3 billion to $6.7 billion, but still remained close to first quarter peak. Last month of the quarter posted strong export gains, which moderated deficits recorded in April and May.

Total exports of goods advanced $0.7 billion to $128.8 billion in the second quarter, largely on prices. Gains were mainly in the automotive sector and, to a lesser extent, the energy sector. Motor vehicles and parts were up $1.1 billion, led by higher export volumes of parts. Exports of passenger cars advanced $0.4 billion, as both volumes and prices rose. Exports of energy products increased $0.6 billion. Crude petroleum was up $2.1 billion on higher prices, recording its first increase since the second quarter of 2014. The gain was partially offset by lower exports of natural gas, mostly due to lower prices.

Other export categories generally dampened the growth in overall exports in the quarter. Metal and non-metallic minerals products fell $0.5 billion largely on lower volumes. Forestry products declined $0.3 billion on lower prices.

Total imports of goods were up $0.4 billion to $135.6 billion in the second quarter. Imports of motor vehicles and parts advanced $2.0 billion on record import volumes of passenger cars. Energy products and consumer goods also increased but at a slower pace. Crude petroleum was up $0.7 billion on higher prices, while consumer goods increased on higher volumes. Metal and non-metallic minerals, industrial machinery, and electronic and electrical equipment and parts recorded the largest declines in imports, all on lower volumes.

The deficit on international trade in services narrowed $0.2 billion to $5.5 billion in the second quarter.

The investment income deficit was reduced by $0.2 billion to $4.0 billion in the second quarter. Income on both portfolio assets and liabilities went up during the quarter. Earnings by Canadian investors on their holdings of foreign securities advanced for the 11th consecutive quarter. Profits earned by foreign direct investors on their Canadian assets were down $0.2 billion, while those earned by Canadian direct investors on their assets abroad were largely unchanged.

Canada Current Account Deficit Narrows in Q2

Statistics Canada | Joana Taborda |
8/31/2015 2:38:06 PM