FX.co ★ Canada Current Account Deficit Narrows in Q3

In the third quarter of 2025, Canada experienced a significant reduction in its current account deficit, which decreased by C$11.9 billion, resulting in a deficit of C$9.7 billion. The deficit in goods and services was notably reduced, falling from C$19.1 billion in the second quarter to C$10.6 billion. This change was driven by a 1.8% increase in goods exports, reaching C$186.0 billion, following a substantial 12.6% decline in the previous quarter. Concurrently, goods imports decreased by 2.0% to C$197.1 billion, marking the second consecutive decline. The services balance improved, shifting from a C$0.7 billion deficit to a C$0.5 billion surplus, thanks to a greater commercial services surplus and a reduced transportation deficit. Additionally, the investment income surplus expanded by C$2.9 billion, reaching C$7.0 billion, bolstered by heightened direct investment income.