Canada's current account deficit widens to $8.5 billion in Q2

ISTANBUL

Canada’s current account deficit widened to $8.5 billion in the second quarter of this year on a seasonally adjusted basis, marking an increase of $3.1 billion from the previous quarter, Statistics Canada reported Thursday.

The country’s current account balance has been in deficit for eight consecutive quarters.

"This increase reflected a higher trade in goods deficit combined with a deterioration of the investment income balance and was partially offset by a lower trade in services deficit," said the statement.

The trade in goods and services posted a $5.4 billion deficit during the April-June period, up by $1.1 billion from the first quarter of 2024. This increase was mainly due to imports of goods rising at a faster pace than exports.

In the second quarter, exports of goods grew by 0.9% to $139.9 billion, with aircraft exports seeing a significant surge of 12.7%. However, imports of goods outpaced exports, rising by 2% to $196.1 billion, led by an 8.1% increase in metal product imports.