(Adds details of release, background)
OTTAWA Aug 28 Canada's current account deficit
in the second quarter narrowed slightly to C$11.87 billion
($10.89 billion) on stronger investment income, Statistics
Canada said on Thursday.
Market analysts had expected a shortfall of C$11.80 billion.
Statscan revised the first-quarter deficit to C$12.03 billion
from an initial C$12.39 billion.
The deficit on cross-border investment income flows shrank
to C$5.80 billion from C$6.27 billion in the first quarter, as
profits of Canadian direct investors on their operations abroad
grew by C$370 million.
The balance on international trade in goods posted a surplus
of C$1.66 billion, down from C$1.78 billion in the first
quarter. Exporters have for long struggled with weak markets and
a strong Canadian dollar but are showing signs of recovery.
Total exports rose by 3.0 percent to hit a record C$132.35
billion on higher shipments of motor vehicles and parts, grains
and forestry products. Exports of energy products - which
accounted for 25.4 percent of all exports in the second quarter
- fell by 3.5 percent to C$33.64 billion.
Total imports rose by 3.2 percent to C$130.72 billion on
greater imports of motor vehicles and parts, consumer goods and
chemical plastic and rubber products.
(Reporting by David Ljunggren; Editing by Paul Simao)