Canada’s current account swung to a surplus of C$8.8 billion in the second quarter of 2026, after posting a deficit of C$8.3 billion in the previous quarter. This was the country’s first surplus since the second quarter of 2022 and the largest since the fourth quarter of 2005. It also defied expectations for a C$2 billion shortfall.
The turnaround was driven primarily by a sharp improvement in the goods balance. Robust growth in goods exports, led by energy products, pushed the trade in goods account from a deficit into a substantial surplus of C$12.2 billion. Goods imports also rose, but at a slower pace than exports.
In contrast, the services surplus narrowed sharply to just C$26 million. At the same time, the primary income deficit widened to C$2.6 billion, reflecting higher interest payments on debt securities. The secondary income deficit also increased markedly, to C$782 million, as a result of higher private transfers and lower government transfers.
