FX.co ★ Canada Current Account Deficit Widens More Than Expected

Canada’s current account deficit widened by C$6.2 billion to C$7.2 billion in the first quarter of 2026, missing expectations for a C$4.7 billion shortfall and extending the streak of quarterly deficits to 15. The surplus on investment income narrowed by C$4.9 billion to C$2.5 billion, largely reflecting lower returns from direct investment. At the same time, the goods trade deficit expanded by C$3.3 billion to C$7.7 billion, as imports grew more rapidly than exports.

Goods imports rose 5.5% to a record C$211 billion, led by a 38.3% jump in metal and non-metallic mineral products—predominantly gold—amid sharply higher precious metal prices. Offsetting some of this deterioration, Canada’s services trade surplus widened by C$0.8 billion to C$1.3 billion.