Canada’s current account swung to a C$8.8 billion surplus in the second quarter of 2026, reversing a C$8.3 billion deficit in the previous three months and recording its strongest balance in more than two decades.
The result marked Canada’s first current account surplus since the second quarter of 2022 and the largest since the fourth quarter of 2005. It also came well above market expectations for a C$2 billion deficit, according to Statistics Canada.
Energy Exports Drive the Turnaround
Trade in goods was the main contributor to the improvement, moving from a deficit in the first quarter to a C$12.2 billion surplus.
Goods exports increased substantially, led by energy products. Imports also rose during the quarter, but at a slower pace than exports.
The shift illustrates the importance of merchandise trade — and particularly energy — to Canada’s external accounts during the period.
Services and Investment Income Offset Part of the Gain
Other components of the current account were less supportive.
Canada’s services surplus narrowed sharply to C$26 million, while the primary income deficit widened to C$2.6 billion, reflecting higher interest payments on debt securities.
The secondary income deficit increased to C$782 million, driven by higher private transfers and lower government transfers.
Overall, the second-quarter figures represented a C$17.1 billion improvement from the previous quarter, with the increase in goods exports accounting for the largest part of the change.
