{"id":502132,"date":"2026-02-27T02:45:07","date_gmt":"2026-02-27T02:45:07","guid":{"rendered":"https:\/\/www.newsbeep.com\/ca\/502132\/"},"modified":"2026-02-27T02:45:07","modified_gmt":"2026-02-27T02:45:07","slug":"canadas-current-account-deficit-narrows-in-q4","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/ca\/502132\/","title":{"rendered":"Canada’s current account deficit narrows in Q4"},"content":{"rendered":"

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.<\/p>\n

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.<\/p>\n

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.<\/p>\n

Canadian securities holdings<\/p>\n

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.<\/p>\n

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.<\/a> Treasury bonds. This was the first time Canadians divested from foreign debt securities since the second quarter of 2020.<\/p>\n

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.<\/p>\n

In all, portfolio investment generated a net inflow of $39.8 billion in the Canadian economy in the fourth quarter.<\/p>\n

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.<\/p>\n

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.<\/p>\n","protected":false},"excerpt":{"rendered":"The trade in goods deficit amounted to $4.5 billion, down from $9.5 billion in the third quarter, while…\n","protected":false},"author":2,"featured_media":502133,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4],"tags":[3244,49,48,21312,200564,44,1215],"class_list":{"0":"post-502132","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-canada","8":"tag-bonds","9":"tag-ca","10":"tag-canada","11":"tag-foreign-investment","12":"tag-imports-and-exports","13":"tag-news","14":"tag-trade"},"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts\/502132","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/comments?post=502132"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts\/502132\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/media\/502133"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/media?parent=502132"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/categories?post=502132"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/tags?post=502132"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}