Current and Capital Accounts

The current and capital accounts comprise transactions in goods, services (which cover travel, transportation, commercial services, and government services), primary income (which covers compensation of employees and investment income, secondary income (current transfers), capital transfers and non-produced non-financial assets. The investment income is further categorized by functional classes in the current account—as is the case in the financial account and the international investment position—to reflect the nature of the investment from which the income is generated. Transactions in exports and interest income are examples of receipts, while imports and interest expense are examples of payments. The balance from the current account’s transactions determines if Canada’s current account is in surplus (receipts exceeding payments) or deficit (payments exceeding receipts).