"If you strip out energy and materials, it is a less robust picture".
- David Rosenberg, Gluskin Sheff & Associates Inc.
[ANNOUNCE]Canada's current account deficit grew less than expected in the Q2 of 2016 amid fall in crude oil prices, official figures revealed on Tuesday.[/ANNOUNCE] According to Statistics Canada, the country's current account widened to C$19.9 billion over the three-month period ending June 31, following the preceding month's revised deficit of C$16.6 billion, whereas market analysts expected Canada's current account deficit to rise to C$20.6 billion in the reported period. The data also showed that the country's international trade deficit in goods jumped C$4.8 billion to C$11.3 billion in the Q2. The merchandise trade surplus with the US dropped C$2.5 billion to C$5.1 billion. The trade deficit with non-US countries increased C$2.3 billion to C$16.4 billion over the reported quarter. On an overall basis, exports fell C$6.6 billion to C$123.6 billion in the Q2, whereas imports declined C1.8 billion to C$134.8 billion in the reported period. Meanwhile, the Canadian services trade deficit narrowed C$0.3 billion to C$5.1 billion, the lowest deficit since the end of 2011. Separate data from Statistics Canada showed that the Raw Materials Price Index (RMPI) dropped 2.7% in July, compared to the previous month's upwardly revised gain of 2.0%, whereas economic desks anticipated a fall of 1.3%. The decline was mainly driven by low crude oil prices.