November 29, 2016 / 1:47 PM / in a year

Canada's third-quarter current account deficit narrows to C$18.3 billion

The new Canadian five and 10 dollar bills, made of polymer, are displayed with the previously released 20, 50 and 100 dollar notes following an unveiling ceremony at the Bank of Canada in Ottawa April 30, 2013. REUTERS/Chris Wattie

OTTAWA (Reuters) - Canada’s current account deficit narrowed in the third quarter after three consecutive quarterly increases as exports saw the highest growth in over two years, data from Statistics Canada showed on Tuesday.

The current account deficit shrank to C$18.3 billion ($13.6 billion) from a downwardly revised C$19.02 billion in the second quarter, though that was short of economists’ expectations for a deficit of C$16.8 billion.

The deficit on international trade in goods narrowed to C$8.33 billion from C$11.06 billion as exports outpaced imports. Exports, a key part of the Bank of Canada’s economic outlook, racked up the highest growth since the first quarter of 2014, increasing by C$5.9 billion to C$130.11 billion.

Energy products were the major contributor to export growth, benefiting from both higher prices and volumes.

The deficit on trade in services edged down to C$5.29 billion, the sixth quarterly reduction in a row, helped by an increase in tourism. The central bank has recently highlighted the growing importance of services exports as the economy adjusts to the impact of lower oil prices.

Foreign investment in Canadian securities was C$33.62 billion, led by purchases of corporate bonds.

Reporting by Leah Schnurr; Editing by Paul Simao

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