2025.08.2815:35:16UTC+00Canada Current Account Hits Record Deficit

In the second quarter of 2025, Canada's current account deficit escalated to an unprecedented C$21.2 billion, marking a C$19.8 billion increase predominantly attributed to a significant deterioration in the goods trade balance. The goods deficit swelled by C$19.1 billion, reaching a historic C$19.6 billion. This was primarily due to a 13.1% decline in exports, which dropped to C$182.2 billion, the lowest level recorded since late 2021, hampered by US tariffs and a strengthening Canadian dollar. Meanwhile, imports decreased by 4.0% to C$201.8 billion. In terms of services, the balance transitioned to a minor surplus of C$0.1 billion, resulting from decreases in both exports and imports. Additionally, foreign portfolio investors divested C$16.8 billion in Canadian securities—the most significant divestment since 2007—as Canadian investors acquired C$26.8 billion in foreign assets.