Canada’s current account deficit narrowed to $0.7 billion, down $4.6 billion from 2024.
Goods exports rose 3.9 percent to $195.1 billion in the fourth quarter, with higher gold exports. Energy and aircraft exports also increased. But, motor vehicles and forestry declined.
Goods imports increased 1.2 percent to $199.6 billion, with electronics and metal ores.
The services surplus narrowed. Services exports rose 0.5 percent, while imports increased 1.5 percent. Travel exports declined, largely due to lower education-related travel.
For 2025, Canada posted a $30.4 billion account deficit, double the $15.0 billion deficit in 2024. The trade in goods deficit widened to $31.1 billion as imports rose 2.8 percent and exports edged down 0.2 percent.
Energy exports fell over the year due to lower crude oil prices. Forestry and chemical exports also declined.
Canada’s goods surplus with the United States narrowed in 2025, while the services deficit with the United States decreased.
In the financial account, foreign investors added $58.2 billion in Canadian securities in the fourth quarter, including a record $33.6 billion in federal government bonds. Portfolio investment produced a net inflow of $39.8 billion.
Foreign direct investment in Canada totalled $25.1 billion in the quarter. For the year, foreign direct investment reached $96.8 billion, which is the highest level since 2007.
Canadian direct investment abroad slowed in the fourth quarter and totalled $79.4 billion for the year, which is the lowest since 2020.