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Statistics Canada on Balance of International Payments, Q2 2025

BY MT Newswires | ECONOMIC | 08/28/25 08:36 AM EDT

08:36 AM EDT, 08/28/2025 (MT Newswires) -- Canada's current account deficit, on a seasonally adjusted basis, widened by $19.8 billion in the second quarter to reach an unprecedented $21.2 billion, Statistics Canada said Thursday.

According to StatsCan, the increase in the current account deficit in the second quarter of 2025 reflected the rapid widening of the trade in goods deficit and was largely due to weaker exports. The previous highest current account deficit on record occurred in the third quarter of 2010, when contribution to the overall deficit was more evenly spread between the goods, services and investment income components of the current account.

Following two consecutive quarterly increases, StatsCan noted goods exports fell 13.1% to $182.2 billion in the second quarter of 2025, the lowest value since the fourth quarter of 2021. Imports of goods fell 4.0% to $201.8 billion in the second quarter of 2025. Exports and imports declined after having reached record high values in the first quarter.

In the financial account (unadjusted for seasonal variation), inflows of funds from abroad to finance the current account deficit primarily came from transactions in the form of currency and deposits in the second quarter, StatsCan said. Meanwhile, it added, for a second consecutive quarter, portfolio transactions generated a sizable net outflow of funds from the Canadian economy.

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