E Canada’s Current Account Deficit Widened In Q1 - Bad News For C$

Canada’s current account (trade) deficit rose to $17.3 billion in the first quarter, or $69.4 billion when the figures are annualized.

The quarterly CA deficit was even larger than in the previous quarter. In other words, the current account deficit was roughly 3% of Canada’s GDP in Q1, which helps explain the general weakness of the Canadian dollar.

On a country basis, Canada’s trade deficit with China increased by $2.1 billion to $6.1 billion in the first quarter, mainly due to lower exports of farm, fishing and intermediate food products. At the same time,

Canada’s trade surplus with the United States increased to $2.4 billion, led by higher exports of energy products.

Looking at the breakdown in the composition of the current account deficit, one can see that the deficit in goods has risen sharply over the past six months, while the deficit in services was largely unchanged.

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Canada’s Current Account Balance 

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Canada’s Goods Trade By Region 

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Exports Were A Major Drag On Canadian Growth In The First Quarter

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