Present account steadiness
First quarter 2023
Canada’s present account deficit (on a seasonally adjusted foundation) narrowed by $1.9 billion to $6.2 billion within the first quarter. The decrease deficit primarily mirrored a smaller funding earnings deficit, partially offset by the next commerce in items and providers deficit.
Within the monetary account (unadjusted for seasonal variation), inflows of funds from overseas to finance the present account deficit got here primarily from a discount in international portfolio shares and loans in addition to from new issuances of company bonds on worldwide markets. In the meantime, the direct funding exercise generated a web outflow of funds totalling $34.0 billion as direct funding overseas surged within the quarter.
Increased commerce in items and providers deficit
The commerce in items and providers steadiness posted a $3.4 billion deficit within the first quarter of 2023, up $1.4 billion from the fourth quarter of 2022. Total imports elevated whereas exports have been down in the course of the first quarter of 2023.
Exports of products have been down by $1.0 billion to $193.7 billion within the first quarter. Exports of power merchandise fell $6.1 billion as costs continued their downward development, whereas exports of motor autos and elements elevated by $3.3 billion. In the meantime, imports of products edged down by $0.2 billion to $192.4 billion.
The commerce in providers deficit expanded by $0.6 billion to $4.7 billion within the first quarter. The journey deficit rose by $0.5 billion. Bills by Canadians travelling overseas continued to extend, up by $0.8 billion. These bills have greater than doubled because the first quarter of 2022.
The transport providers deficit elevated by $0.2 billion within the first quarter of 2023, as exports have been down. Imports have been unchanged from the earlier quarter and mirrored larger funds associated to the transport of passengers by air, offset by decrease funds for the transport of merchandise by water.
Decrease deficit for funding earnings
The funding earnings deficit narrowed by $2.6 billion to $0.9 billion within the first quarter. Earnings earned by Canadian direct buyers overseas rose by $2.5 billion, whereas these earned by international direct buyers in Canada have been up $1.9 billion in contrast with the fourth quarter.
Earnings generated on loans and deposits continued to extend within the wake of rising international rates of interest, with receipts up by greater than funds within the first quarter of 2023. Curiosity acquired on international loans and deposits has elevated greater than five-fold within the final yr. Throughout the identical interval, curiosity paid on such devices held by non-residents in Canada virtually tripled.
Canadian buyers promote international shares
Within the first quarter, Canadian buyers decreased their publicity to international securities by $23.4 billion, the primary quarterly divestment in a yr. Traders largely offered US shares and, to a lesser extent, non-US international shares within the quarter. The general divestment was moderated by the acquisition of $3.2 billion in international bonds.
On the opposite aspect of the ledger, international buyers decreased their publicity to Canadian securities by $8.0 billion within the first quarter. Divestments in shares (-$16.6 billion) and cash market devices (-$16.4 billion) have been moderated by international investments in Canadian bonds (+$24.9 billion), primarily new company bonds denominated in non-US foreign currency.
Canadian direct funding overseas surges
Canadian direct funding overseas reached $57.9 billion within the first quarter, greater than the earlier two quarters mixed. Cross-border mergers and acquisitions of $37.9 billion, the best stage because the fourth quarter of 2021, led the funding exercise. On a sector foundation, greater than half of the general direct funding overseas was within the finance and insurance coverage sector. On a rustic foundation, the funding was predominantly directed to the USA.
International direct funding in Canada totalled $23.9 billion within the first quarter of 2023, up from $16.7 billion within the earlier quarter. Whereas earnings reinvested in Canadian associates by their international dad and mom remained elevated, cross-border merger and acquisition exercise totalling $9.2 billion additionally contributed to the general funding.
Observe to readers
Upcoming modifications inside the Steadiness of funds program
Within the fall of 2023, Statistics Canada might be updating the North American Product Classification System (NAPCS) used for items import and export statistics. The NAPCS 2022 model will substitute NAPCS 2017, which is the model at present in use.
This variation might be mirrored within the third quarter statistics for the Steadiness of Worldwide Funds which is scheduled to be revealed in November 2023.
The steadiness of worldwide funds covers all financial transactions between Canadian residents and non-residents in three accounts: the present account, the capital account and the monetary account.
The present account covers transactions in items, providers, compensation of staff, funding earnings and secondary earnings (present transfers).
The present account information on this launch are seasonally adjusted. For info on seasonal adjustment, see Seasonally adjusted data—Frequently asked questions.
The capital account covers capital transfers and transactions in non-produced, non-financial belongings.
The monetary account covers transactions in monetary belongings and liabilities.
In precept, a web lending (+) or web borrowing (-) derived from the sum of the present and capital accounts corresponds to a web lending (+) or web borrowing (-) derived from the monetary account. In observe, as information are compiled from a number of sources, that is not often the case and offers rise to measurement error. The discrepancy (web errors and omissions) is the unobserved web influx or outflow.
International direct funding is offered on an asset-liability precept foundation (that’s, gross foundation) within the monetary account. International direct funding will also be offered on a directional precept foundation (that’s, web foundation), as proven in supplementary international direct funding tables 36-10-0025-01, 36-10-0026-01, 36-10-0473-01 and 36-10-0656-01. The distinction between the 2 international direct funding conceptual displays resides within the classification of reverse funding corresponding to (1) Canadian associates’ claims on international dad and mom and (2) Canadian dad and mom’ liabilities to international associates. Underneath the asset-liability presentation, (1) is classed as an asset and included in direct funding belongings, additionally known as direct funding overseas on this textual content, and (2) is classed as a legal responsibility and included in direct funding legal responsibility, additionally known as direct funding in Canada on this textual content.
For extra info on the steadiness of funds, seek the advice of “Chapter 8. International Accounts,” within the Consumer Information: Canadian System of Macroeconomic Accounts, out there on Statistics Canada’s web site. The chapter additionally presents the latest steadiness of funds statistics.
Actual-time desk 36-10-0042-01 might be up to date on June 5, 2023. For extra info, see Real-time tables.
Steadiness of worldwide funds information for the second quarter of 2023 might be launched on August 31, 2023.
The doc, “Enterprise surveys and the measurement of digital trade in services in Canada,” which is a part of Newest Developments within the Canadian Financial Accounts (), is now out there. 13-605-X
The product Canada’s international trade and investment country fact sheet () is offered on-line. This product offers straightforward and centralized entry to Canada’s worldwide commerce and funding statistics, on a country-by-country foundation. It incorporates annual info for almost 250 buying and selling companions in abstract kind, together with charts, tables and a brief evaluation that will also be exported in 71-607-XPDF format.
The product “Canada and the World Statistics Hub” () is offered on-line. This product illustrates the character and extent of Canada’s financial and monetary relationship with the world utilizing interactive graphs and tables. This product offers easy accessibility to info on commerce, funding, employment and journey between Canada and a variety of international locations, together with the USA, the UK, Mexico, China and Japan. 13-609-X
The product Methodology for Exports of Energy Products within the International Merchandise Trade Program, which is a part of Newest Developments within the Canadian Financial Accounts (), is offered. 13-605-X
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