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26.02.202613:30:00UTC+00Canada’s Current Account Gap Narrows Sharply in Q4 2025

Canada’s current account deficit narrowed significantly in the fourth quarter of 2025, signaling a notable improvement in the country’s external balance. According to data updated on 26 February 2026, the current account came in at -0.7 billion Canadian dollars in Q4 2025, compared with a much wider shortfall of -9.7 billion dollars recorded in the third quarter of 2025.

The sharp reduction in the deficit suggests that Canada’s trade and income flows with the rest of the world moved closer to balance at the end of 2025. While detailed breakdowns were not provided, the figures indicate a substantial quarter-on-quarter adjustment in the country’s external position during the final months of the year. Investors and policymakers are likely to view the data as a constructive development for Canada’s macroeconomic backdrop going into 2026.

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