- Prior was -$6.63B (revised to -$7.328B)
Canada’s current account deficit narrowed significantly to $3.2 billion in Q3 2023, down from larger deficits earlier in the year but still far larger than expected.
Goods posted a slight surplus in contrast to the large deficit in Q2 in large part due to energy exports and higher oil prices. The services deficit widened slightly in something of a surprise as it was driven by trade deficits in transportation and an increase in personal travel expenses by Canadians abroad.
The surplus with the United States increased by $6.6 billion, reaching $30.0 billion, mainly due to a $7.0 billion rise in exports. Trade deficits with other countries narrowed, with notable changes in trade balances with China and the United Kingdom.
On the financial accounts, there was a notable outflow of funds amounting to $41.4 billion, driven by strong acquisitions of foreign securities and record retirements of Canadian government bonds. Canadian investment in foreign securities hit a high, primarily in US instruments. Foreign direct investment in Canada almost doubled from the previous quarter, majorly in the manufacturing sector.
Overall, the balance of payments data continues to be a concern for Canada.