THE CANADIAN PRESS

Stumble Upon

del.icio.us

Digg

Facebook

Print

Email

Speak Up

OTTAWA - Canada's current account surplus with the rest of the world expanded to $6.8 billion in the second quarter, led by exports of goods.

Statistics Canada attributes the gains mainly to higher prices for several exported commodities, which pushed the goods surplus to $16.4 billion. Transactions in services and investment income had a dampening effect on the increase in the current account balance in the second quarter.

Net transactions in the capital and financial account were more subdued than in several previous quarters, with outflows of funds exceeding inflows.

The agency reports strong foreign demand for Canadian securities, in particular bonds, while foreign direct investment into Canada slowed significantly.

Canadian investors continued to shy away from foreign debt instruments in favour of equity, while Canadian direct investment and other investment flows moderated.

The increase in the value of exports exceeded that of imports for the second straight quarter.

Accelerating energy prices were the main factor behind the strength in the value of sales of goods to other countries. Despite a marginal decline in volumes, export values for crude petroleum were up $3 billion on strong price gains of 25 per cent.

The increase in the value of exports of natural gas arose from sharply higher gas prices (up 33 per cent), as volumes declined 14 per cent.

Export values for coal more than doubled in the second quarter, due to high international demand, which influenced both prices and volumes. Exports of forestry products advanced modestly for the first time since 2005, driven by price gains.

Automotive products continued to decrease despite higher exports of passenger autos, the fifth straight drop in foreign sales of automotive products.

Imports of goods rose at a faster clip than in the first quarter. Nearly half of the increase came from higher imports of crude petroleum, through a combination of higher prices and volumes.