Canada’s Current Account Deficit Hits $7.2 Billion as Imports Surge and Bond Investment Soars

Canada’s current account deficit widened sharply to $7.2 billion in the first quarter of 2026, marking the 15th straight quarterly deficit, as imports rose faster than exports and investment income weakened. According to Statistics Canada, the deficit increased by $6.2 billion, driven by a larger trade gap in goods and a smaller investment income surplus, which dropped by $4.9 billion to $2.5 billion. Imports of goods climbed 5.5% to a record $211.0 billion, mainly due to higher gold and precious metal purchases, while exports increased 3.9% to $203.3 billion, supported by crude oil, natural gas, and gold shipments. Canada’s trade in goods deficit widened to $7.7 billion as motor vehicle exports fell 10.7% to their lowest level since 2020. Energy products remained the strongest export category, with the energy trade surplus reaching a record $36.5 billion. Meanwhile, foreign investors purchased a record $78.6 billion in Canadian bonds, helping finance the deficit. Canada’s services surplus also improved to $1.3 billion as financial services exports rose 10.0% to $6.2 billion.