The Canadian Press

The current-account deficit on transactions with the rest of the world narrowed to $9.8 billion in the fourth quarter, largely reflecting an energy-led increase in exports of goods.

Statistics Canada reports the current account has been in deficit for the last five quarters after almost 10 years of surpluses.

Cross-border financial transactions continued to generate large inflows of funds, with foreign acquisitions of Canadian bonds again dominating in the quarter to cap a year of unprecedented foreign investment in Canadian securities.

Meanwhile, inward and outward direct investment activity slowed from a strong third quarter, with 2009 at significantly lower levels than 2008.

The trade in goods balance returned to a surplus in the fourth quarter of 2009 after two quarters of deficits.

Both exports and imports of goods increased further in the quarter, with exports leading the way.

Geographically, Canada’s bilateral surplus with the US on goods widened for the first time since the second quarter of 2008.

The value of goods exported rose $5.7 billion during the fourth quarter, propelled by higher energy product exports, particularly crude petroleum.

Exports of industrial goods were up $1.9 billion, mostly on higher volumes, with two-thirds of the growth in metal and alloys products.

Exports of automotive products were up $1.1 billion, all from higher volumes of passenger cars. The value of cars exported has risen by more than 80 per cent since its 17-year low in the first quarter.

The value of imports of goods advanced $1 billion in the fourth quarter, with the largest increase in automotive products.

The deficit for trade in services expanded marginally in the fourth quarter of 2009, mainly due to a slight increase in the commercial services deficit, as imports rose by more than exports. The travel deficit also widened as Canadians increased spending in the United States.

The deficit on investment income transactions widened to $3.7 billion in the fourth quarter from $3.4 billion in the third quarter.