Canada’s current account deficit narrowed to $12.39 billion in the first quarter of 2014 thanks to a stronger performance by exporters, Statistics Canada said on Thursday.
Market analysts had expected a shortfall of $13.10 billion. StatsCan revised the fourth quarter deficit down to $15.64 billion from an initial $16.01 billion.
The data show the struggling export sector – hit by a strong Canadian dollar and weak markets – is starting to recover. Total exports rose by $6.51 billion to $127.72 billion, the highest level since the third quarter of 2008, thanks mostly to greater shipments of energy.
The balance on international trade in goods posted a surplus of $1.56 billion, the first of its kind since the end of 2011. The deficit on international transactions in services grew by $0.40-billion to $6.25 billion.
Canadian investment in foreign securities was $10.36 billion higher than foreign investment in Canadian securities, the highest such gap since the fourth quarter of 2007.
