Canada Q2 current account -8.48 billion vs -5.85 billion

• Prior was -5.37 billion
• Goods deficit increased to C$2.2 billion from near balance in Q1
• Services deficit narrowed to C$3.2 billion from C$4.3 billion
• Investment income balance swung to C$0.6 billion deficit from C$1.3 billion surplus

Key Points:

• Imports rose 2.0% to C$196.1 billion, led by motor vehicles and parts
• Exports edged up 0.9% to C$139.9 billion on higher aircraft shipments
• Foreign investment in Canadian securities surged to C$67.3 billion, highest since Q1 2022
• Foreign direct investment in Canada hit C$38.5 billion, strongest since 2007

While services exports improved, the goods balance deteriorated significantly. The swing to an investment income deficit is also concerning. However, strong foreign investment inflows, particularly in government bonds, helped finance the shortfal

This article was written by Adam Button at www.forexlive.com.