The current account deficit rose in the second quarter, in large part due to the widening trade deficit.
Canada’s current account deficit was $12.9 billion in Q1, and has since worsened to $16.3 billion in Q2.
The trade deficit reached $5.2 billion. Outside of our $10.4 billion trade surplus with the United States, we have a $15.6 billion trade deficit with the rest of the world.
While exports rose slightly to $143.3 billion, imports reached $148.5 billion, the largest import increase in nine years.
Canada needs pro-export policies
It’s no surprise to see the trade gap widening. The more taxes and regulations are imposed on our domestic economy, the more Canada will be forced to rely on imports. Of course, this makes our economy more vulnerable, and it costs our country money.
Considering our hard-working population, high level of technology, and abundant resources, there is no reason why Canada shouldn’t have a massive trade surplus.
It would be easy to make that happen, if only we can get rid of the many burdensome regulations and elitist big-government attitude that strangles our businesses and holds back our country from reaching our full potential.