September 11, 2014 / 12:38 PM / 5 years ago

Canada back to net foreign debt in second-quarter from net foreign assets

A supermoon rises over Ottawa's Parliament Hill as seen from Gatineau, Quebec August 10, 2014. REUTERS/Chris Wattie

OTTAWA (Reuters) - Canada switched back in the second quarter to having net foreign debt after enjoying two quarters of having a small amount of net foreign assets, Statistics Canada said on Thursday.

The country’s international investment position was one of C$57.3 billion ($52.1 billion) net debt, with overall international assets at C$3.10 trillion and international liabilities of C$3.15 trillion.

In the first quarter, it had net foreign assets of C$37.4 billion, and the quarter before C$27.6 billion. Those were the only two quarters in the black since the data series began in 1990.

Statistics Canada attributed the change partly to a higher Canadian dollar and relatively strong Canadian equity markets, which it said increased the value of international liabilities by more than the value of international assets.

It was also supported by the current account deficit, resulting in greater foreign investment in Canada than Canadian investment abroad.

($1=$1.10 Canadian)

Reporting by Randall Palmer; Editing by Alex Paterson

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