UPDATE 1-Canada current account deficit up 2.9 pct on lower exports

Thu Nov 29, 2012 8:33am EST
Email This Article |
Share This Article
  • Facebook
  • LinkedIn
  • Twitter
| Print This Article
[-] Text [+]

* Deficit up as exports fall faster than imports

* Deicit on trade in services hits new record

OTTAWA, Nov 29 (Reuters) - Canada's current account deficit in the third quarter of 2012 grew by 2.9 percent to a near-record C$18.91 billion ($19.10 billion) as exports fell at a greater pace than imports, Statistics Canada said on Thursday.

The deficit was smaller than the C$19.20 billion shortfall expected by analysts. Statscan slightly revised the second quarter deficit to C$18.38 billion from C$18.37 billion.

The deficit was the second largest on record after the C$19.43 billion posted in the third quarter of 2010.

The overall balance on trade in goods posted a C$4.84 billion deficit, up from C$3.64 billion in the second quarter. Total exports of goods fell by C$3.73 billion to C$112.75 billion, in part due to lower energy shipments, while imports dropped by C$2.54 billion to C$117.58 billion.

The deficit on trade in services edged up by C$0.29 billion to hit a record C$6.28 billion while the deficit on investment income shrank by C$1.21 billion to C$6.26 billion as Canadians received more interest and dividends from their holdings of foreign securities.

Foreign investors acquired C$28.15 billion in Canadian securities in the third quarter compared with C$28.50 billion in the second quarter. Canadian investment in foreign securities jumped to C$8.91 billion from C$2.81 billion.