Canada’s current account surplus more than doubled expectations in the second quarter, reaching C$8.84 billion, according to data released by Statistics Canada on Thursday.
The surplus, the largest since 2005, contrasts sharply with the revised deficit of C$8.31 billion recorded in the first quarter. Economists had projected a surplus of C$3.9 billion, underscoring the scale of the improvement.
The expansion was primarily fueled by a surge in goods exports, particularly energy products, which rose 27.4% in the quarter. Analysts attributed the increase to higher global oil prices, driven by geopolitical tensions in the Middle East, including the war in Iran. Crude oil and bitumen exports reached record levels during the period.
Foreign investment flows also strengthened. Foreign investors increased their holdings of Canadian government bonds by a record C$80.8 billion, while foreign direct investment into Canada climbed to C$25.9 billion from C$18.8 billion in the prior quarter. The rise in direct investment was largely attributed to earnings reinvested by foreign parents in their Canadian affiliates. Over half of the total direct investment was directed toward the manufacturing, finance, and insurance sectors.
The current account, which measures trade, investment income, and other cross-border transactions, reflects Canada’s evolving position in global capital and goods flows.
