Our country’s current account deficit widens to $16 billion

“Statistics Canada says the country’s current account deficit widened to $16 billion in the fourth quarter of 2013, as exports lagged and foreign investment fled Canada.

In figures released this morning, the agency said the deficit on international trade in goods widened $1.4 billion to $2.7 billion in the fourth quarter” according to a cbcnews.ca article. “Exports declined led by a downturn in exports of crude oil, metals and mineral products. For 2013 as a whole, with the current account deficit totals $60.7 billion, a $1.5 billion improvement from 2012. The current account has remained in a deficit position since the fourth quarter of 2008. The fourth quarter current account deficit also reflects the flight of foreign investors from money market instruments. After the U.S. Fed began the process of tapering, announcing in December it would reduce its monthly bond-buying program to $75 billion US  in January, money began moving out of Canadian Treasury bills toward U.S. instruments.” Read the full article here. | Raymond Matt, CFP, CLU, TEP, CH  

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