Current Account Surplus with Rest of the World Narrows to $5.6 Billion in Q3

(The Canadian Press)

Canada’s current account surplus with the rest of the world contracted to $5.6 billion in the third quarter of 2008 on a lower goods surplus and a slowdown in commodity price gains.

Statistics Canada also noted a higher investment income deficit during the period, as Canadian earnings on foreign direct investment fell. Cross- border direct investment flows strengthened, the agency said, with “notably large Canadian direct investment abroad and a resumption of foreign acquisition of Canadian companies.” Due to the turmoil in equity and credit markets, however, Canadian investors’ demand for foreign securities slowed and non-resident investors reduced holdings in Canadian stocks and bonds. Summary statistics and a link to the data file are on the Statistics Canada website at Statistics Canada website.