Canada's current account deficit (on a seasonally adjusted basis) narrowed by $9.0 billion in the fourth quarter to $10.7 billion as the goods balance posted its first surplus in more than two years.

In the financial account (unadjusted for seasonal variation), foreign investment in Canadian private corporate securities led the inflow of funds in the economy in the quarter.

For the year 2016, the current account deficit edged up $0.1 billion to $67.7 billion. The deficit on goods expanded, mainly on lower exports of energy products. A lower deficit on services moderated the overall increase in the current account deficit in 2016.

In the financial account, transactions in securities generated a record net inflow of funds of $147.5 billion in 2016. These inflows were partially offset by outflows in direct and other investment. Direct investment abroad exceeded direct investment in Canada by $43.3 billion in 2016.

Since the return to a current account deficit in 2009, the funding of this deficit has mostly come from transactions in securities. Foreign investment in Canadian securities has steadily exceeded Canadian investment in foreign securities during this period.