Canada's current account deficit (on a seasonally adjusted basis) widened by $3.4 billion in the second quarter to $16.3 billion, as the deficit on international trade in goods expanded.

In the financial account (unadjusted for seasonal variation), foreign investment in Canadian bonds was the largest contributor to the net inflow of funds in the economy.

The deficit on international trade in goods expanded $3.3 billion to reach $5.2 billion in the second quarter, as imports advanced by more than exports. This followed a $2.0 billion deterioration of the goods balance in the first quarter.

On a geographical basis, the goods deficit with non-US countries was up $1.8 billion, mainly reflecting a higher deficit with China. Meanwhile, the surplus with the United States was reduced $1.5 billion to $10.4 billion after three straight quarters of increases.