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Canada's Q3 Current Account Deficit Narrows to $9.7 Billion

BY MT Newswires | ECONOMIC | 11/27/25 08:42 AM EST

08:42 AM EST, 11/27/2025 (MT Newswires) -- Canada's current account deficit on a seasonally adjusted basis narrowed by $11.9 billion to $9.7 billion in Q3, said the country's statistical agency on Thursday.

The Q3 deficit was much lower than the $15.1 billion consensus deficit provided by MUFG.

The decrease in the current account deficit in Q3 was largely due to a narrowing of the trade in goods deficit, as exports increased in the quarter while imports decreased, noted Statistics Canada in a statement. The investment income and trade in services components also contributed to the overall narrowing of the current account deficit.

In the financial account -- unadjusted for seasonal variation -- inflows of funds from overseas to finance the current account deficit came primarily from international investment in Canadian debt securities.

While Canadian investors continued to increase their exposure to United States securities, international investors rekindled their demand for Canadian securities in Q3, added StatsCan.

MT Newswires does not provide investment advice. Unauthorized reproduction is strictly prohibited.

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In general the bond market is volatile, and fixed income securities carry interest rate risk. (As interest rates rise, bond prices usually fall, and vice versa. This effect is usually more pronounced for longer-term securities.) Fixed income securities also carry inflation risk and credit and default risks for both issuers and counterparties. Unlike individual bonds, most bond funds do not have a maturity date, so avoiding losses caused by price volatility by holding them until maturity is not possible.

Lower-quality debt securities generally offer higher yields, but also involve greater risk of default or price changes due to potential changes in the credit quality of the issuer. Any fixed income security sold or redeemed prior to maturity may be subject to loss.

Before investing, consider the funds' investment objectives, risks, charges, and expenses. Contact Fidelity for a prospectus or, if available, a summary prospectus containing this information. Read it carefully.

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