Canada’s Current Account Surplus Falls Short on Foreign Income

The country ran a current account surplus of C$2.7 billion ($2.1 billion) in the second quarter, Statistics Canada reported on Tuesday, well short of the C$6.8 billion projected by economists. The agency also cut its estimate for the first-quarter surplus by nearly half to C$2.7 billion.

The current account is the broadest measure of international payments and receipts — from trade in goods and services to other sources of income such as investments. Large surpluses tend to support currencies, while deficits can act as a drag.

Canada’s smaller-than-expected surplus in the first half reflects how some of the windfall from rising oil prices is accruing to foreign companies invested in the sector. The investment income deficit widened to C$4.6 billion in the second quarter, from C$1.3 billion in the first quarter.

The nation’s goods surplus hit C$12.5 billion in the second quarter, the highest level since 2008 on a surge in oil revenue. The nation ran a services deficit of C$3.4 billion in the second quarter, from C$1.9 billion the previous quarter, as foreign travel picked up.