Canada Conto Corrente

Canada's current account deficit widened to CAD 5.0 billion in Q4 2024, up from an upwardly revised CAD 3.6 billion in Q3 and far over market expectations of a CAD 3.2 billion deficit. Investment income surplus narrowed to CAD 1.0 billion from CAD 4.2 billion, driven by a significant increase in profits earned by foreign direct investors on their assets in Canada combined with higher payments of interest and dividends paid to foreign portfolio investors. Meanwhile, the goods account deficit was substantially lower at CAD 0.4 billion from CAD 3.2 billion, and the services account deficit widened to CAD 1.8 billion from CAD 0.3 billion. Foreign investors acquired CAD 49.8 billion in Canadian bonds during the quarter, while foreign direct investment in Canada remained at CAD 28.0 billion from CAD 28.0 billion in the prior quarter.