Canada’s current account deficit in the second quarter narrowed slightly to C$11.87-billion on stronger investment income, Statistics Canada said on Thursday.
Market analysts had expected a shortfall of C$11.80-billion. Statscan revised the first-quarter deficit to C$12.03-billion from an initial C$12.39-billion.
The deficit on cross-border investment income flows shrank to C$5.80-billion from C$6.27-billion in the first quarter, as profits of Canadian direct investors on their operations abroad grew by C$370-million.
The balance on international trade in goods posted a surplus of C$1.66-billion, down from C$1.78-billion in the first quarter. Exporters have for long struggled with weak markets and a strong Canadian dollar but are showing signs of recovery.
Total exports rose by 3.0 per cent to hit a record C$132.35-billion on higher shipments of motor vehicles and parts, grains and forestry products. Exports of energy products – which accounted for 25.4 per cent of all exports in the second quarter – fell by 3.5 per cent to C$33.64-billion.
Total imports rose by 3.2 per cent to C$130.72-billion on greater imports of motor vehicles and parts, consumer goods and chemical plastic and rubber products.
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