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Canada's current account deficit widens as trade gap grows

Published May 30, 2018 Updated May 30, 2018 05:19pm

Analysts in a Reuters poll had forecast a shortfall of C$18.00 billion. The record deficit was the C$20.20 billion set in the third quarter of 2010.

The trade deficit in goods jumped to C$8.97 billion from C$7.49 billion as imports grew at a faster rate than exports.

Imports rose to C$148.23 billion from C$145.25 billion on higher shipments of motor vehicles and parts as well as energy products. Exports edged up to C$139.26 billion from C$137.75 billion on greater demand for energy products.

Direct investment in Canada for the quarter rose to C$17.79 billion, the highest level in two and a half years, with more than half of the money going to the manufacturing sector.

Copyright Reuters, 2018