RTTNews - Canada's overall current account deficit expanded to C$11.2 billion during the second quarter of 2009, which also marked the first quarterly deficit on international trade in goods in more than 30 years, according to Stats Canada.

This marked the third quarterly current account deficit since the Canadian economy contracted in the fourth quarter of 2008.

Economists forecast the current account deficit would widen to $11.8 billion after a deficit of C$7.7 billion in the previous quarter.

In the capital and financial account (unadjusted for seasonal variation), net borrowing from abroad continued. In particular, cross-border financial flows in securities provided substantial inflows of funds to Canada in the second quarter of 2009. A large part of this activity was led by a surge in new issues of Canadian bonds purchased by foreign investors.

In the capital and financial account (unadjusted for seasonal variation), net borrowing from abroad continued. In particular, cross-border financial flows in securities provided substantial inflows of funds to Canada in the second quarter of 2009.

Stats Canada noted that a large part of this activity was led by a surge in new issues of Canadian bonds purchased by foreign investors.

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