Canada’s Current Account Deficit Gap Narrows on Exports

(Reuters)

Canada's current account deficit narrowed in the fourth quarter of 2009 as the country's surplus in goods trade with the United States expanded for the first time in six quarters, Statistics Canada said on Friday.

The current account gap shrank less than expected to C$9.77 billion ($9.22 billion) from C$13.80 billion in the previous quarter. It was the fifth straight deficit after a decade of surpluses and was bigger than market expectations of an C$8.50 billion shortfall due to widening deficits in services trade and investment income.

The current account results add to growing evidence of a gradual economic recovery in Canada and come as the government is under pressure to map out a strategy to pay down its record-large fiscal deficit.

Related: U.S. Economic Growth Revised Upward (AP/CBC)