Canada's current account balance on a seasonally adjusted basis enjoyed a surplus of 3.6 billion Canadian dollars in the second quarter of 2021, Statistics Canada says.
Article continues below
The country posted a 1.8 million dollar surplus in the first quarter. Prior to 2021, Canada had continuous current account deficits from the fourth quarter of 2008 until the end of 2020.
The surplus in the second quarter mostly reflected a positive trade in goods and services balance and a higher investment income surplus.
The trade in goods and services balance posted a second consecutive surplus, reaching 1.8 billion Canadian dollars in the second quarter.
This surplus was led by higher exports of goods. Exports of goods rose 0.9 billion dollars to 153.2 billion Canadian dollars in the second quarter.
The goods balance registered a second consecutive surplus, while the services balance remained in an unusual surplus position in the context of the COVID-19 pandemic, which affected travel payments more severely than receipts.
In the financial account, portfolio and direct investment both led the net lending activity to non-residents in the quarter.
For portfolio investment, record Canadian purchases of foreign shares in the context of continued strength of global stock markets was the main contributor.
The foreign direct investment generated a net outflow of funds totaling 10.2 billion Canadian dollars in the second quarter, as direct investment abroad exceeded direct investment in Canada.
Direct investment abroad rebounded, following lower investments in the first quarter. Meanwhile, direct investment in Canada slowed, mainly on lower merger and acquisition transactions.
The investment income surplus was up 1.7 billion Canadian dollars to 4 billion Canadian dollars in the second quarter, largely due to lower interest payments on loans and deposits held by non-residents. ■
Predominant upper-level ridging stretching from the Southwest to the southern High Plains will allow for another day of record-breaking heat across parts of Nevada and Arizona today.