Canadian current account deficit hits near-record in Q2 2016

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. 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.