Canada’s current account deficit widened more than expected in the first quarter of the year on an increase in imports of both good and services, data from Statistics Canada showed on Tuesday.
The $14.05 billion gap in the first three months of the year exceeded economists’ expectations for a deficit of $12 billion. The fourth quarter was revised to a deficit of $11.78 billion from an initially reported deficit of $10.73 billion.
Overall, total goods imports rose $4 billion to $140.3 billion as Canada imported more energy products, as well as motor vehicles and parts. That outpaced exports, which increased by $2.2 billion to $138.5 billion.
The trade balance of goods swung to a deficit of $1.82 billion, with larger trade gaps with non-U.S. countries including Brazil and Germany. Stronger energy exports saw the trade surplus with the United States, Canada’s largest trading partner, rise to $11.89 billion.
Trade in services widened to a deficit of $5.65 billion as imports of commercial services edged up. The travel deficit also rose as spending by Canadians visiting the United States outpaced spending by U.S. tourists in Canada.
© Thomson Reuters 2017