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Canada's quarterly current account deficit widens

Canada's current account deficit widened by C$3.0 billion to a seasonally adjusted C$19.50 billion in the first quarter from C$16.49 billion in the prior quarter, driven by higher deficits in goods and investment income, Statistics Canada said.

The deficit in international trade in goods rose to C$15.15 billion, the largest deficit since the second quarter of 2016. The shortfall in the prior quarter was C$13.93 billion.

The goods deficit rose to C$8.97 billion for the quarter as total exports of goods edged up to C$139.26 billion and total imports rose to C$148.23 billion.

The goods surplus with the U.S. fell to C$7.07 billion on higher imports, while the deficit with non-U.S. countries narrowed to C$16.04 billion due to higher surplus with the U.K. and lower deficits with Korea and the Netherlands.

The country's deficit in services narrowed to C$6.19 billion in the quarter from C$6.43 billion in the previous quarter.

The deficit in primary income, covering investment income and compensation of employees, widened to C$3.76 billion in the first quarter, with foreign direct investment as the main contributor. Receipts from Canadian direct investment abroad were down to C$17.83, while payments on foreign direct investment in Canada increased to C$13.75.