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The Globe and Mail

Higher exports cut current account deficit

A workers passes cargo containers stacked up at the Port of Vancouver in Vancouver, B.C., in this file photo.

DARRYL DYCK/THE CANADIAN PRESS

Canada's current account deficit shrank by 16 per cent in the fourth quarter of 2011 on higher exports, but was still larger than market forecasts, Statistics Canada data indicated on Thursday.

The deficit fell to $10.33-billion from a revised $12.32-billion in the third quarter. Markets had been expecting a shortfall of $9-40 billion.

The overall balance on trade in goods jumped to $3.13-billion from $248-million. Exports of goods were up by $6.68-billion to $121.47-billion, the highest since the third quarter of 2008.

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The services deficit edged up by $60-million to $6.16-billion on a lower commercial services surplus and a higher transportation deficit.

For 2011 as a whole the current account deficit fell to $48.30-billion from a record high $50.86-billion in 2010.

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