Canada’s foreign assets and liabilities both declined in the fourth quarter mainly because of the strong dollar, Statistics Canada said today.

The country’s net liability to non-residents fell by 1.3% from the previous quarter to $190.8 billion at the end of the fourth quarter of 2004.

On a year-end basis the net liability to non-residents – the difference between foreign assets and foreign liabilities – was down by 12.5% from $218 billion at the end of 2003.

The value of international assets at the end of the fourth quarter totalled $945.1 billion, down one% from the third quarter. The strong dollar removed $19.5 billion from the value of those assets during the quarter.

“At the same time, Canada’s international liabilities declined $12.4 billion to $1,135.9 billion,” the agency said. “The appreciation of the dollar removed $14.8 billion from the value of the liabilities.

“Net external liabilities at the end of December represented 14.4% of gross domestic product, down from 14.8% in the third quarter. At the end of 2003, this ratio was 17.7%.