By Paul Vieira
OTTAWA – Canada recorded its third consecutive current account surplus in the third quarter, the first time in 13 years, before the 2008-09 financial crisis and the global recession.
The country’s current account, or the broadest indicator of Canada’s trade and investment relations with other countries, posted a surplus of C $ 1.37 billion, or the equivalent of C $ 1.07 billion. dollars, in the third quarter of 2021, Statistics Canada said on Monday. Market expectations were for a surplus of C $ 4.4 billion, according to economists at CIBC Capital Markets.
Data for the previous quarter has been revised, Statistics Canada said, and now shows Canada’s current account surplus in the second quarter was also C $ 1.37 billion, down from a previous estimate of C $ 3.58 billion. Canadian dollars.
The Canadian economy is benefiting from strong commodity prices, which have risen since the depths of the coronavirus recession. As a result, the trade balance in goods and services was in surplus for a third consecutive quarter, driven by exports of energy products.
The gain in the trade balance was offset by a sharp drop in primary incomes, which fell from a large surplus in the second quarter, C $ 2.54 billion, to a modest deficit in the third quarter, C $ 642 million. .
CIBC Capital Markets also noted that the data indicates that the profits made by foreign direct investors in Canada have grown at a faster rate than the profits made by Canadian investors abroad.
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