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Canada's current account deficit narrows

Canada's current account deficit narrowed to C$16.35 billion on a seasonally adjusted basis in the fourth quarter of 2017 from C$18.59 billion in the third quarter, Statistics Canada said.

The deficit in international trade in goods declined to C$7.16 billion from C$9.02 billion in the previous quarter as exports rose by C$6.4 billion after a significant decline in the third quarter. Imports increased by C$4.5 billion.

Canada's goods deficit with countries other than the U.S. increased by about C$700 million to C$17.6 billion in the quarter as the deficit in trade with the EU and China widened.

The country's goods trade surplus with the U.S. increased by C$2.6 billion to C$10.5 billion in the quarter. The U.S. has cited its trade deficit with Canada and Mexico as one of the reasons for renegotiation of the North American Free Trade Agreement. The seventh round of NAFTA talks is underway.

The country's deficit in services widened to C$6.47 billion in the quarter from C$6.17 billion in the previous quarter.

For full year 2017, current account deficit was C$63.93 billion, down 2.2% from C$65.37 billion in 2016. The goods trade deficit decreased to C$23.89 billion from C$25.87 billion in the prior year, while services deficit increased to C$25.09 billion from C$23.31 billion.