The trade in goods deficit amounted to $4.5 billion, down from $9.5 billion in the third quarter, while trade in services was down to a $1.4-billion surplus, from a $2 billion surplus.
Goods exports increased 3.9% to $195 billion on a quarterly basis, led by metal products (mostly gold), partially offset by falling motor vehicle and forestry product exports. Goods imports rose 1.2% to $200 billion, mainly driven by electronic and electrical equipment and parts and metal ores and non-metallic minerals.
Meanwhile, services imports were up 1.5% to $60 billion in the fourth quarter, mainly from higher values for travel, transportation and commercial services. Services exports rose 0.5% to $61 billion, with gains in transportation and commercial services partially offset by lower exports of travel services.
Canadian securities holdings
Foreign investors increased their holdings of Canadian securities by $58.2 billion in the fourth quarter, mainly in the Canadian bond market. Meanwhile, Canadian investors acquired $18.5 billion of foreign securities, down from a $56.1-billion investment in the third quarter.
Canadian investors reduced their exposure to foreign debt securities by $13.2 billion quarter over quarter, driven by a record divestment of $20.5 billion from U.S. Treasury bonds. This was the first time Canadians divested from foreign debt securities since the second quarter of 2020.
Foreign investors acquired a record $33.6 billion of Canadian federal government bonds, while they reduced their holdings of federal government money-market instruments by $17.6 billion.
In all, portfolio investment generated a net inflow of $39.8 billion in the Canadian economy in the fourth quarter.
For the year 2025, foreign direct investment in Canada reached $96.8 billion, the highest level since 2007. The main recipients of inward direct investment were the trade and transportation ($23.6 billion), management of companies and enterprises ($14.5 billion), and manufacturing ($11.2 billion) sectors. More than half of the investment originated from the U.S.
At the same time, Canadian direct investment abroad of $79.4 billion was at the lowest level since 2020. Canadian sales of existing assets abroad exceeded acquisitions by $3 billion. Merger and acquisition activities resulted in a net divestment of $11.1 billion from the U.S. and $8 billion from the rest of the world, the national statistical agency reported.