Canada: Current account deficit rose by $3.0 billion in Q1 to $19.5 billion
According to the latest report published by Statistics Canada, the country's current account deficit, on a seasonally adjusted basis, increased by $3.0 billion in the first quarter to $19.5 billion amid higher deficits on trade in goods and investment income. Below are some key takeaways from the press release.
In the financial account (unadjusted for seasonal variation), foreign direct investment activity was the largest contributor to the inflow of funds in the economy in the quarter.
The deficit on international trade in goods and services increased by $1.2 billion to $15.2 billion in the first quarter, the largest deficit since the second quarter of 2016.
The goods deficit rose by $1.5 billion from the previous quarter to $9.0 billion.
Total exports of goods rose by $1.5 billion to $139.3 billion in the first quarter. Exports of energy products were up by $2.2 billion, on higher crude petroleum prices and volumes.
Total imports of goods were up $3.0 billion to $148.2 billion. Imports of motor vehicles and parts increased by $1.5 billion, led by higher volumes.
Author
Eren Sengezer
FXStreet
As an economist at heart, Eren Sengezer specializes in the assessment of the short-term and long-term impacts of macroeconomic data, central bank policies and political developments on financial assets.
