null  null
CATALOGUE No.
67-001
QUARTERLY
CANADA
z&
SYSTEM OF NATIONAL ACCOUNTS
QUARTERLY ESTIMATES OF THE CANADIAN
BALANCE OF INTERNATIONAL PAYMENTS
FIRST QUARTER
1971
DOMINION BUREAU OF STATISTICS
.
The contents of this document may he used freely but DBS should be credited when republishing all or any part of it.
DOMINION BUREAU OF STATISTICS
Balance of Payments and Financial Flows Division
Balance of Payments Section
SYSTEM OF NATIONAL ACCOUNTS
QUARTERLY ESTIMATES OF THE CANADIAN
BALANCE OF INTERNATIONAL PAYMENTS
FIRST QUARTER
S
1971
Published by Authority of
The Minister of Industry, Trade and Commerce
June 1971
2306-502
Price: 75 cents
$3.00 a year
n fOF FilatFoll Canada
Ottawa
Vol. 19 No. 1
Page
Introduction
MerchandiseTrade
Non-merchandise Transactions
Current Account Transactions-Seasonally Adjusted
Transactions by Areas
CapitalMovements - Summary
DirectInvestment
SecurityTransactions
OtherCapital Flows in Long-term Forms
CapitalMovements in Short-term Forms
Official International Monetary Assets and Liabilities
System of National Accounts
....................................................................................
3
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5
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6
8
8
10
11
11
12
14
16
18
Table
1.
2.
3.
4.
5.
6.
7.
8.
Canadian Balance of International Payments - Detailed current and capital accounts
20
Canadian Balance of International Payments - Detailed current account seasonally adjusted 24
Canadian Balance of International Payments - Summary accounts by geographic area
26
Canada's Official International Monetary Assets and Liabilities
30
Canada's General Account with the International Monetary Fund
32
Balance of Payments Adjustments to Trade of Canada Figures
33
Reconciliation Statement with National Income and Expenditure
33
Historical Summary of Selected Current and Capital Account Transactions
34
...........
.............
..............................
................................
...................................
................................
......................
SYMBOLS
The following standard symbols are used in Dominion Bureau of Statistics publications:
P
r
x
*
figures not available.
figures not appropriate or not applicable.
nil or, in this publication less than half unit expressed.
preliminary figures.
revised figures.
confidential to meet secrecy requirements of the Statistics Act.
new series not strictly comparable with earlier years.
QUARTERLY ESTIMATES OF THE CANADIAN BALANCE OF INTERNATIONAL PAYMENTS
I
IL
in constant dollars, decelerated somewhat in the first quarter of 1911. With unemployment at a relatively high level and a lower rate of price increase than most other industrialized countries in 1970,
further measures were taken to quicken the pace of economic activity. This was done in large part by
easing monetary conditions particularly through the reduction of short-term interest rates parallelling
similar movements in other countries. (Long-term interest rates seemed stickier and remained at relatively high levels). Management of the economy towards increased employment was not made easier by
the continued high value of the floating Canadian dollar in the foreign exchange market.
Summary Statement
1970
1969
1971
1970
IQ
IIQ
IIIQ
IVQ
IQ
millions of dollars
Merchandise trade balance .............
Balance on non-merchandise transactions
Current account balance ...............
Capital movements in long-term forms
Cipital movements in short-term forms
Lcapital movement (1) ...............
Allocation of Special Drawing Rights
Net official monetary movements .......
..
+860
1,611
751
-
-
+ 2,257
1,441
+816
-
...
+65
+ 3,002
1,705
+ 1,297
-
+
-
+
814
581
233
+
133
+ 1,663
+ 631
576
+55
-
+ 644
305
-
+ 339
+ 133
+ 527
+ 650
398
+ 252
-
-
44
+ 731
253
+ 478
-
+ 149
+ 573
-
529
-
-
-
+ 781
401
252
-
+ 226
+ 990
478
+ 512
+ 700
558
+ 142
-
-
-
+65
448
383
-
-
-
-
+ 129
+ 269
363
94
+ 119
+ 167
(1)Excluding items shown below.
Some diminution in the strength of the current account of the Canadian balance of international
payments was evident in the first quarter of 1971 even after allowing for seasonal factors. The current account surplus of $142 million (unadjusted for seasonal variations) was however, still sizeable.
Principal factors in the quarter, which tended to have countervailing effects, were the relatively
high positive trade balance and the seasonal increase in travel payments abroad.
Capital movements led to a net outflow of $94 million, a decline of $289 million from the
fourth quarter 1970 outflow. Capital movements in long-term forms recorded a net inflow of $269 million, up $204 million from the previous quarter. The main contributing factors to this change were a
reversal of $150 million to a net inflow of $49 million from transactions in outstanding foreign securities as Canadians swung from being net buyers to net sellers, and a reduction in outflows for the
"other long-term capital transactions" category, principally net repayments of bank loans, to $12 million from $150 million in the preceding quarter. The principal offset was provided by an increase in
Canadian direct investment abroad which rose by $85 million to $145 million in the quarter under
review.
Capital movements in short-term forms resulted in a net outflow of $363 million, down $85 million from the efflux of $448 million in the fourth quarter of 1970. Largely accounting for this
decreased outflow was a $675 million swing to an inflow of $568 million arising from a reduction in
Canadian holdings of foreign currency bank balances and other short-term funds abroad. Principal movements in the opposite direction were provided by the $136 million outflow as non-residents unwound
significantly their positions in Canadian money market paper; and the increase of $497 million to $854
m~l lion in the outflow for "other short-term capital transactions". This latter category included a
•sharp $230 million jump to $298 million in the outflow to increase chartered bank Canadian dollar
claims on non-residents (i.e. Euro-Canadian dollar claims). However the major component of this catdory is the balancing item representing the difference between the recorded measures of current and
elpital accounts.
CANADIAN BALANCE OF INTERNATIONAL PAYMENTS
MFPruJ1fIcF TPM)F
MILLIONS
DOLLARS__
OF
MILLIONS
OF DOLLARS
NON-MERCHANDISE TRADE
5,500
2,000
5,000
1,800
NON-MERCHANDISE
PAYMENTS
,5O0
1,600
I
q000
'
1,400
I'
'/
Il
I
,500
1,200
/
,000/
/
I
1,000
\
I/
/
' NON-MERCHANDISE
RECEIPTS
/
/
800
,500
I I I I
IIIIIIV
1968
I I I I I I I I I
1IIIIIIVIIIIIIIVIIIIII
I
600
10
I I I I I I I I 1111110
IV
196919701971
MILLI ONS
OF DOLLARS
CAPITAL MOVEMENTS
- 800
700
IVIIIIIIIVIIIIIIIVIIIIII
1968
196919701971
-
- 800
— 600
CAPITAL BALANCE
—
IV
MILLIONS
OF DOLLARS
BALANCES
I'
600
/\ IflfIOW
LONGTERM
III
—400
— 200
+
500
0
400
300
CCOUNT
BALANCE
200
/
— 200
— 400
100
600
+
Il
,I I
-''I
-
IIl
I
I
-
Outflow
'i
/
Il
I
,
—200
— 400
—300
- 200
+
i
— 200
—500
—
I-
0
—400
IISHORT TERM
600
IIII IIIIIII
1968
IIIIIIIVIIIIIIIVIIIIII
196919701971
IV
800
— 400
desAllOcotI000f
SpecioI DrawIng Rights
—700
IIIIIIV
— 600
NET OFFICIAL
MONETARY MOVEMENTS
I I
I
I
I
_,t
— 800
III
III
IVIIIIIIIVIIIIIIIVIIIIII
1968
196919701971
- 600
IV
800
S
-5-
')ificial net monetary assets rose by $167 million. Apart from the current and capital account
ions outlined above the reserves were augmented to the extent of $119 million by Canada's
receipt of its second allocation of Special Drawing Rights from the International Monetary Fund on
January 1, 1971.
Lin1..ct
Merchandise Trade
In the first quarter of 1971 the surplus on merchandise trade rose to $700 million surpassing
that in the corresponding period of last year by 11 per cent. This occurred despite the continued
appreciation of the Canadian dollar, generally sluggish conditions in the United States and efforts to
stimulate economic activity in Canada.
Merchandise exports increased by 4 per cent to $4,099 million, a rate of growth which was well
below that recorded for the corresponding period in 1970. This deceleration partly reflects the differing effects on exports of the aftermaths of protracted strikes in each period. In the first quarter
of 1970 there was a surge in sales of some metal products to catch up on lower shipments of these commodities in the last few months of 1969. The General Motors strikes in the closing months of 1970 did
not, however, produce the same effects as the 1969 metal industry strikes as automotive exports in the
first quarter of 1971 only increased by about the same rate as in the correspon4ing period of last
year. Other increases occurred in exports of barley, rapeseed, nickel ores, crude petroleum, natural
gas, coal and steel. Reduced exports were recorded for wheat, iron ore, copper, aluminum, newsprint
and chemical elements. Sales to the United States this year rose at a higher rate than total merchandise exports and were responsible for nearly the whole of the increase in Canadian exports, thus
reversing the situation which emerged last year when this market accounted for only about 40 per cent
of the increase in Canadian exports.
PERCENTAGE SHARE IN MERCHANDISE AND NON-MERCHANDISE
TRANSACTIONS Not all merchandise exports lead to
immediate cash receipts by Canada. In fact
MECHANDIS1
, 16HDSE EXPORTS payments usually occur only on or after the
i
196
goods arrive in the country of import. In
addition to normal short-term credit financed
[5
____________________
by the exporter or his bank the Government
22
68% B24
19 (
5
I
,1
of Canada also has programs which directly
4.03.02010
02.03.04.050 influence the volume of exports. For examE8ILIONS OF 001 LRS
ple, the government guarantees export credits
NONMERCHANDISE PAYMENTS NONMERCHANDISE RECEIPTS and often finances many of these larger
transactions. In addition, the soft loan
965
1OTHER COUNTRIES program provides funds to developing counI
'
tries, often for the purchase of Canadian
goods while official contributions to these
UK.
countries include gifts of commodities as
20IS
0
AILLIONSOF DOLL.cRS well as cash grants and technical assistance.
Exports to developing countries amounted to
$312 million, an increase of about 7 per cent
over the first quarter of last year. The total value of commodity-oriented aid made available under
the various Government of Canada programs represented over 22 per cent of total Canadian exports to
these countries. Food and other commodity grants represented about 30 per cent of the total while soft
loans and export credits represented 31 and 39 per cent respectively.
FIRST QUARTER 1965, 1970,1971 [}•'
roI
I
Imports went up by about 3 per cent to $3,399 million, that is at a rate slightly higher than
that in the corresponding period last year. Following declines of 4 and I per cent in the first two
months of the quarter, on a year-to-year basis, imports rose by about 13 per cent in March, as against
10 per cent in March last year. Increases in imports of automotive goods which had been depressed in
the previous quarter as a result of the lengthy strikes in the automobile industry exceeded the total
expansion of imports. Other commodities showing increased imports were petroleum and coal products,
personal goods and chemicals. There were lower imports of aluminum ores, woven fabrics, fabricated
iron and steel, copper, machinery and computers. The generally sluggish overall rise in imports
appears to indicate that the effects of the appreciation in the value of the Canadian dollar on imports
have not as yet been fully felt partly because of the continuing effect on domestic expenditures,
(particularly capital formation), of the relatively slow tempo of economic activity which prevailed in
the first quarter.
S
-6-
Adjustments to recorded merchandise trade for balance of payments purposes shown in Table included a net addition of $7 million to exports mainly for timing corrections in respect of wheo
shipments and progress payments on ships and military aircraft. A deduction of $32 million from
reflected mainly timing adjustments for civilian aircraft progress payments and deliveries and the
elimination of amortization and other automotive special tooling charges which are included in business
services. The net effect of these adjustments has been an increase of $39 million to the recorded
trade balance.
I
The index of domestic export prices (1968100) continued to decline from a high of 106.5 in May
last year and an average of 105.5 in the first three months of 1970 to an average of 103.8 in the first
quarter of 1971. Sizeable reductions were evident in the prices of the crude and fabricated materials
group which by March 1971 had fallen by 6 per cent from the highest point reached in the first half of
1970. World supply and demand conditions for certain non-ferrous metals and wood products, a lowering
of prices to maintain competitive positions and a reduction in the Canadian dollar equivalent of fixed
contract prices expressed in foreign currencies following the rise in the value of the dollar, contributed to the decline in the prices of these groups of commodities. Average first quarter prices of end
products, however, were about 3 per cent above the year-ago level. This escalation in the export prices
of end products was accompanied by an upward movement in the average quarterly index of physical volume
for this group which over the year rose by about 8 per cent.
The upturn in import prices which appeared in the last quarter of 1970 continued in the first
quarter of 1971, although by March 1971 import prices were still below the May 1970 peak by over 1 per
cent. The increase in import prices resulted mainly from a rise of over 4 per cent in the prices of
crude materials, particularly coal. In the case of the other two main groups of commodities there was
actually a decline in prices for fabricated materials and a small rise of about 1 per cent for end
products.
Import prices on average in the first quarter were unchanged from the corresponding quarter of
1970. The deterio nt ennhnutper cent H Piiki'Lcrn uf trneen ncceiintrd for by the fI
in export prices.
Non-merchandise lransacLi:ns
In the first quarter of 1971 non-merchandise receipts rose by about 6 per cent to $962 million
and non-merchandise payments went up by 2 per cent to $1,520 million. The deficit on invisibles fell
by $18 million to $558 million. The increase in receipts occurred on both service and transfer transactions, the latter rising by 23 per cent to $118 million mainly due to larger inflows of immigrants'
funds. Service receipts increased by about 4 per cent to $844 million principally through higher inter est and dividend income and increased earnings on freight and shipping transactions. Service payments
moved up marginally to $1,386 million largely due to higher travel expenditures abroad and business
service payments which were partly offset by lower disbursements of investment income and for government transactions. At $134 million total transfer payments showed an increase of about 13 per cent
resulting from larger personal and institutional remittances and official contributions.
The net balance from receipts and payments of interest and dividends declined by $41 million
to a deficit of $235 million in the first quarter of 1971 from $276 million in the first quarter of
1970. The deficit from the transfers of all investment income (including miscellaneous income) also
declined in the same period but at a substantially lower rate. The net decline of $41 million was
accounted for by a contraction in total payments of interest and dividends of $16 million and an
increase in corresponding receipts of $25 million. The main factor responsible for the reduction in
dividend payments was a relatively sharp decline in payments by Canadian subsidiaries to parent companies in the United States.
Dividends paid to foreign portfolio investors recorded an increase but not sufficiently large
to significantly affect the dividend payments item as a whole. Interest payments registered an increase
of $19 million over the first quarter of 1970, reflecting almost solely increased payments on foreign
holdings of provincial bonds. Transfers abroad of miscellaneous income recorded virtually no change
in the first quarter of 1971 as compared with the corresponding period of the preceding year. Total
1 -iI-
:'rHy
-:'.•:-tett;:tiCo:oo:L
is
-7-
Investment Income
MiscDivi
d
PeriodInterest ellaneous Totals
ends
incone(1)
millions of dollars
Receipts
1969
1970
161
240
253433
273562
increasing by $19 million and $6 million,
respectively. The total rise in dividend
receipts was accounted for by larger payments
by foreign subsidiaries to Canadian parent
companies while larger earnings on official
holdings of foreign exchange were responsible
for most of the rise in interest receipts.
Receipts of miscellaneous income recorded a
decrease of $15 million in the first quarter
of 1971.
847
1,075
Due to higher disbursements on overseas travel which were only partly offset by
1970
40
72141
253
increased expenditures of United States travI Q
II Q
56
65140
261
ellers in Canada, the deficit on travel rose
III Q
62141
61
264
by about 5 per cent to $201 million. The
IV Q
83
74140
297
switch of the Easter holidays, which this
year fell in the second quarter of 1971, as
1971
59
78126
263
well as the effects of a severe winter and
I Q
slackness in economic conditions were
reflected in the smaller number of travellers
Payments
crossing the Canada-United States border in
the first quarter of 1971. In the case of
United States travellers, however, the impact
1969
649
696
459
1,804
on the balance of payments was partially
1970
780
535
744
2,059
reduced by higher per capita expenditures in
Canada. As for overseas travel, while there
1970
176
212
126
514
was a small decline in both the number of
1 Q
[IQ
197
134
486
155
overseas visitors and their expenditures in
180
128
173
481
Canada, the number of Canadian travellers
I Q
1V Q
191
240
147
578
and their disbursements overseas continued
to climb, rising by 13 and 17 per cent respect;;i
195
125
177
497
tively. Continental Europe was the main
I Q
attraction and accounted for over 50 per cent
(1) In the main balance of payments tables, this of the increase in overseas travel expendiis included in other service receipts and tures.
other service payments; it includes, in addition to income on short-term and miscella- Reflecting the larger increase in
neous long-term investments, all services merchandise exports over imports in both
associated with international banking and value and volume terms, earnings on freight
insurance operations. and shipping rose by about 4 per cent to $243
million, while payments went up by about 3
per cent to $232 million. This account therefore continued to show an increase in the small surplus
balance which rose to $11 million.
Receipts from "Other Services" which include government transactions, miscellaneous income and
business services and other transactions went down by about 2 per cent to $329 million. Payments on
the other hand rose by about 3 per cent to $468 million. The deficit therefore climbed by 17 per cent
to $139 million. An increase of over $20 million in business service payments and a reduction of about
$15 million in miscellaneous income receipts mainly banking earnings, were partly offset by higher
receipts and lower payments on government transactions, the balance on which was improved by about $20
million. Gold production available for export declined to $22 million from $25 million in the corresponding period last year.
The deficit on transfers fell by about 30 per cent to $16 million. Reflecting principally the
rise in funds brought in by immigrants, receipts went up by 23 per cent to $118 million, while payments,
including increased personal and institutional remittances and official contributions rose by only
about 13 per cent to $134 million. The reduction in the number of immigrants, indicating the response
of immigration to reduced employment opportunities in Canada and strong economic conditions in most of
Western Europe, was more than offset by higher per capita inflows of funds. Net payments on personal
and institutional remittances climbed by 18 per cent to $26 million mainly on account of higher perii I leni I t tances.
(tficial contributions, representing the grant portion of Canada's international development
abroad, rose by about 23 per cent to $38 million. About 50 per cent of the contributions
consisted of aid under bilateral accounts in the form of economic and technical assistance while over
32 per cent was contributed through food aid programs.
iI:Iiicu
-8-
Current Account Transactions in the First Quarter - Seasonally Adjusted
After removal of seasonal variations the current account balance in the first quarter fell
over one third to $352 million from the exceptionally high surplus of $545 million in the fourth quarter of 1970. In spite of this sharp drop it remained, however, the second largest surplus ever recorded. Total current receipts edged upwards by 4 per cent to $5,591 million while payments rose by 8 per
cent to $5,239 million. The merchandise surplus declined by 24 per cent to $734 million due to a
strong movement in imports which registered a 12 per cent increase to $3,613 million, and a relatively
weak rise of 4 per cent in exports to $4,347 million. With these changes imports regained the high
level which was attained in the fourth quarter of 1969 and exports reversed the downward direction evident over the preceding three quarters. There was, however, a partially offsetting decrease of 9 per
cent in the deficit on imvisibles which fell to $382 million from $420 million in the final quarter of
1970.
SELECTED CURRENT ACCOUNT ITEMS,
SEASONALLY ADJUSTED
LLIONSOFDO.LARS
5,000
4,500 MERCHANDISE
EXPORTS
4,000
3,500
3,000 - 2,500
J-I
1,
MERCHANDISE
IMPORTS
NON-MERCHANDISE
PAYMENTS
800L
1,600
1,400
I,200k..1,000
eooj—i
1,200
1,000
800
600
400
200
RECE IPIS
I
-
/
MERCHANDISE
BALANCE
,
I
Service receipts rose marginally to
$1,091 million. There was an appreciable
increase of 22 per cent in interest and dividend receipts and smaller increases of 2
and 6 per cent respectively from travel and
freight and shipping. Partly offsetting
these increases in receipts there were drops
of about 10 per cent in gold production
available for export and in "Other service
receipts". Both components of transfer
receipts recorded marked advances.
Total service payments increased only
fractionally to $1,474 million, but there
were some significant changes among the individual service payments. Payments of interest and dividends were up by 12 per cent
while freight and shipping payments rose by
8 per cent. Travel expenditures abroad and
"Other service payments" were, on the other
hand, 4 and 8 per cent lower respectively.
Transfer payments contracted by 4 per cent
as inheritances and emigrants' funds and
official contributions decreased by about 10
per cent to $49 million and $51 million
respectively and institutional remittances
abroad rose by 8 per cent to $52 million.
-...
BALANCE
6 00
IIIIIIII11 IIII
IIIIVIIIIIIIVIIIIIIVIIIIIIIVIIIIIIIV
19671968196919701971
Seasonally adjusted at annual rates
the current account surplus of $1,408 million represented an increase of about 9 per
cent over the 1970 surplus of $1,297 million.
On this basis the merchandise balance was in
surplus by $2,936 million with cousnodity
exports at $17,388 million and imports at
$14,452 million.
Transactions by Areas
With the United States the current account deficit was reduced by more than one half to $123
million from $269 million in the first quarter of 1970. An advance of 6 per cent in cotinuodity
exports which rose to $2,797 million and a 1 per cent gain in imports which went up to $2,489 million
produced a growth of 76 per cent in the merchandise surplus to $308 million. All of the increase in
exports occurred in March as shipments in the first two months of the quarter were down slightly from
the corresponding months of 1970. In the quarter, exports or motor veFicies, engines and parts were
up by 14 per cent and shipments of lumber, crude petroleum and natural gas rose by 15 per cent. SaIc
of steel increased significantly partly in response to strike-hedge demand. There were decreases in
exports of newsprint, wood pulp, nickel, iron ore and aluminum. Imports of cattle rose substantiali':
while imports of motor vehicles, parts and engines were over 16 per cent higher than in the first quarter of 1970; purchases of aircraft, engines and parts and fabricated steel sheets and plates were down.
[i
-9-
The non-merchandise deficit was reduced by 3 per cent to $431 million as a 7 per cent increase
in receipts to $571 million eclipsed a 2 per cent advance in payments to $1,002 million. The decrease
of $13 million in the non-merchandise deficit reflected an increase of $8 million in the surplus on
transfers, mainly from immigrants' funds, and a contraction of $5 million in the deficit on services
largely from decreased disbursement balances on travel and interest and dividends. Within the interest and dividends account receipts advanced by 39 per cent to $96 million while payments fell by 6 per
cent to $304 million. On travel, while expenditures in the United States by Canadian travellers have
remained unchanged, disbursements by United States travellers in Canada rose by about 10 per cent to
reach a high of $100 million. Gold production available for export, which is conventionally credited
to the United States account, contracted by $3 million.
If the credit representing gold production available for export is excluded, Canada's current
account deficit with the United States in the first quarter of 1971 was $145 million. Capital movements between the two countries produced a net inflow of $392 million as a net inflow of capital in
long-term forms of $258 million was augmented by a net short-term capital inflow of $134 million. In
sum these transactions with the United States gave rise to net receipts by Canada of $247 million.
With the United Kingdom, the current account surplus fell by 17 per cent to $148 million. The
trade balance declined by 12 per cent to $147 million. From the high of $335 million established in
the corresponding quarter of 1970 commodity exports fell to $319 million. At $172 million merchandise
imports from the United Kingdom showed a small increase remaining, however, at more or less the same
level as in the last two years. Exports to the United Kingdom last year were influenced by the strikes
in the metal industries in Canada during 1969 which necessitated increased purchases by the United
Kingdom in 1970 to build up inventories which had been run down during the strikes. Sales of copper,
aluminum, newsprint and lumber were lower while there were increased nickel exports. Imports of fabricated materials (mainly knitted fabrics), were up by 9 per cent while purchases of end products were
down slightly. The surplus on services and transfers was nearly wiped out falling to a mere $1 million; non-merchandise receipts decreased by $19 million to $120 million while payments declined by only
$9 million to $119 million. A total increase of $7 million in net travel and interest and dividends
payments was only partly offset by small increases in net earnings from freight and shipping and "other
•;ervice transactions". On the latter account substantially lower government and business expenditures
in the United Kingdom were practically offset by significant reductions in earnings of miscellaneous
income. Among the transfer items while payments of personal and institutional remittances were slighti.y up, receipts of immigrants' funds were down by over 25 per cent due to a relatively large reduction
in the number of immigrants from the United Kingdom and lower per capita funds.
With the OECD (Europe) group of countries the shift in the current account balance from a surplus of $16 million to a deficit of $5 million resulted largely from the increase in the non-merchandise deficit which rose by about 19 per cent to $115 million. A small contraction in the merchandise
trade surplus to $110 million resulted from an increase of 10 per cent in commodity exports being
exceeded by a rise of 16 per cent in imports which went up to $276 million. Increased sales of rapeseed went to West Germany, the Netherlands and Italy. There were increases in shipments of nickel to
Norway and of wheat to Turkey. Although the growth in exports to West Germany was slight there were
some significant changes in the composition as more barley, woodpulp and asbestos were purchased while
iron ore and copper purchases decreased. Imports from West Germany, France, Norway and Sweden rose
by $37 million while the only significant decrease was from the Netherlands. There were increased
purchases of motor vehicles from West Germany while more nickel arrived from Norway.
At $91 million receipts from non-merchandise transactions from this group of countries were
essentially unchanged from the corresponding quarter of 1970 but payments rose by 9 per cent to $206
million. The rise in the deficit on invisibles arose mainly from the higher deficits on travel and on
interest and dividends as a total increase of $18 million in net payments on these two accounts was
only fractionally offset by a small contraction in the deficits on freight and shipping and "other
service transactions". On transfers the increase of $5 million in official contributions to Turkey was
partly offset by the expansion in net receipts of immigrants' funds from this group of countries.
With the Rest of the Sterling Area the current account surplus rose by 22 per cent to $79 million. As the merchandise trade surplus was reduced by $2 million this improvement was due entirely to
non-merchandise transactions the balance of which reversed from a deficit of $8 million to a surplus
of similar magnitude. Merchandise exports to this group of countries fell by about 5 per cent to $171
million. Decreases were recorded for exports to Pakistan, Jamaica, South Africa, and Ceylon while
shipments to India and Australia rose. Shipments of fertilizers to Pakistan and of wheat flour to
Ceylon were lower while India purchased more rapeseed and aluminum. Exports to Australia of railway
stock and newsprint were higher while lumber and nickel were lower. At $100 million merchandise
imports were lower with less being sourced from Australia and Kuwait (solely crude petroleum). The
decrease in imports from these sterling area countries occurred mainly in the crude materials group.
- 10 -
Among the service items receipts and payments of travel and of freight and shipping remained unchanged
from the corresponding quarter of 1970. Due largely, however, to an improvement in the balance on
miscellaneous income the deficit on "other service transactions" was reversed to a surplus of $12 mi
lion. Net receipts of interest and dividends contracted slightly. There was a decrease in net trarfer payments resulting from an increase in immigrants' funds.
With the Other Countries group the current account surplus was reduced by one third to $43 million. The merchandise trade surplus deteriorated by 38 per cent to $64 million as commodity exports
contracted slightly and imports surged by 11 per cent to $362 million. Commodity purchases by Argentina, U.S.S.R., and Japan were reduced but there were increases in sales to Brazil, Venezuela, Cuba
and Algeria. Reduced sales of wheat were the cause of the decrease in exports to the U.S.S.R. The
increase to Cuba was due to larger shipments of wheat flour to that country. Japan took less wheat,
barley and aluminum but coal purchases were up. Exports of motor vehicle parts to Argentina were lower
while sales of aircraft and newsprint to Brazil were higher. Increases were recorded in merchandise
imports from Japan, Taiwan, Iran and Saudi Arabia. There were increased purchases of motor vehicles
from Japan, and of crude petroleum from Venezuela, Saudi Arabia, Iran, Nigeria and Colombia. While nonmerchandise payments rose by only 2 per cent to $127 million receipts jumped by 23 per cent to $106
million to yield a reduced deficit of $21 million, down 45 per cent from the first quarter of 1970.
Counterbalancing in part the expansion in the surplus on interest and dividends, due to large increases
in receipts, and the contraction in the deficit on "other service transactions" there was an increase
in net travel payments and a decrease in the freight and shipping surplus. Official contributions were
unchanged from the corresponding quarter of 1970. Net transfer payments fell by about 20 per cent to
$17 million mainly as a result of higher receipts from immigrants from this group of countries.
Total current and capital account transactions by Canada with the United Kingdom and other overseas countries in the first quarter of 1971 resulted in net payments by Canada of $221 million. The current account surplus of $265 million resulted from a positive merchandise trade balance of $392 million
which was partly offset by a deficit on service transactions of $127 million. Capital movements
between Canada and these countries led to a net outflow of $486 million. A small net inflow of $11
million from capital movements in long-term forms was completely overshadowed by a $497 million outflow
of short-term capital principally to build up both Canadian dollar and foreign currency assets he'd
overseas by Canadians.
Capital Movements
The net movement of capital between Canada and other countries in the first quarter of 1971
gave rise to an outflow of $94 million, down $289 million from an outflow of $383 million during the
fourth quarter of 1970. The lower level of net capital export was accompanied by a reduction in the
current account surplus from the fourth quarter level of $512 million to $142 million. These movements
together with a second allocation of Special Drawing Rights from the International Monetary Fund of
$119 million, gave rise to an increase in Canadian net official monetary assets of $167 million.
The reduction in the net capital outflow in the first quarter was due primarily to a sharp
increase in the inflow of capital in long-term forms from $65 million to $269 million. A major contributing factor in the increase was a reversal of fourth quarter outflows of $101 million for net
purchases of outstanding foreign securities to an inflow during the first quarter of $49 million, a
net change of $150 million. Also significant was a reduction in outflows from "Other long-term capital
transactions" to $12 million from $150 million in the preceding quarter. This category includes bank
and other long-term loans, mortgage investments and movements of insurance funds. Inflows from sales
to non-residents of newly issued Canadian securities increased $56 million to $278 million. These
movements were offset in part by increased direct investment abroad by Canadians of $85 million to $145
million during the first quarter from $60 million in the fourth quarter 1970. Changes in movements
for other long-term categories were relatively minor. The effect of adjusting actual long-term capital
inflows to reflect the timing of security offerings is given in the following statement which shows
that deliveries were in excess of offerings by $127 million during the quarter.
Net capital movements in short-term forms, with an outflow of $363 million in the first quarter, were down $85 million from outflows of $448 million in the fourth quarter of 1970. There were,
however, substantial shifts within this category. Canadian resident holdings of foreign currency bank
balances and other short-term funds abroad declined $568 milLion duriug the first quarter representing
fl
- 11 -
Capital Movements in Long-term Forms
Adjusted to
Actualreflect timing
Period
movementof security
offerings
millions of dollars
1969 ..........+ 2,257 + 2,114
1970 ..........+ 814+466
1970IQ....+644+585
I1Q.... -44-152
TTT
(
4-1I9
a swing of $675 million from the $107 million
outflow in the fourth quarter 1970. This
inflow was offset, to some extent, by decreases in non-resident holdings of Canadian money
market instruments. Foreign holdings of
treasury bills, commercial paper, finance and
other short-term paper, and other finance
company obligations fell by $128 million.
The major offsetting movement, however, took
place in the "other short-term transactions"
category, with a net outflow of $854 million,
an increase of $497 million from the fourth
quarter 1970 level.
-1-67
Transactions through the Canadian
chartered banks played an important part in
19711 Q . - .. +269+142capital account movements. The net spot
holdings of foreign currency claims (excluding
gold) on non-residents of the Canadian chartered banks fell markedly on a transactions
basis by $693 million in the quarter while
those with Canadians rose by $600 million to produce an overall decrease of $93 million.
Claims on residents of the United States and overseas countries fell by $737 million and $115
million respectively, while liabilities to these areas declined by a respective $65 million and $94
million. Foreign currency claims on Canadians fell by $61 million and liabilities to them declined a
substantial $661 million. The net decrease of $93 million in the Canadian banks' foreign currency
position reflected reductions in net assets of $672 million with residents of the United States and of
$21 million with overseas countries and an increase of $600 million with residents of Canada. The
overall effect of these transactions on the balance of payments is measured by the decrease in the net
position vis-à-vis non-residents which led to a net inflow of $693 million. This figure cannot be
identified separately in the balance of payments presentation in this report but forms elements of several of the items.
Direct Investment
The net capital inflow in long-term forms for direct investment in foreign controlled Canadian
enterprises in the first quarter of 1971 amounted to $285 million, only $5 million less than that
recorded in the previous quarter but $85 million more than the net inflow of the corresponding quarter
of 1970. Net inflows from United States investors accounted for about 70 per cent of the total with
most of the remainder originating with principals domiciled in Continental Europe. Special transactions
such as the substitution for some short-term inter-company accounts by long-term liabilities and other
refinancing accounted for about one third of the total net inflow. For balance of payments purposes
direct investment excludes transactions in long-term forms by foreign controlled Canadian companies
with residents of the controlling countries, other than principals. These include new issues and
retirements of bonds, debentures and common and preferred stocks, borrowings and repayments on other
long-term loans, also excluded are all short-term claims. About 65 per cent of the net long-term inflow increased non-resident direct investment in the manufacturing industry in Canada with the balance
going mainly to the mining sector.
Canadian long-term investment abroad in foreign enterprises controlled from Canada increased
during the quarter as a result of net outflows of capital amounting to $145 million, significantly
higher than the $60 million net outflow recorded in the previous quarter. About 45 per cent of the
net outflow was directed to the United States with only small amounts going to the United Kingdom and
Continental Europe. The balance of the net flows representing about 45 per cent of the total went
mainly to Commonwealth countries. Industrially, the largest share of the net outflow originated with
Canadian companies in the mining industry while manufacturing enterprises contributed most of the
balance. Transactions by petroleum concerns resulted in only a modest net outflow.
Security Transactions
International portfolio security transactions during the first quarter resulted in inflows in
long-term forms of $184 million, compared with an outflow of $12 million in the fourth quarter of 1970.
- 12 -
On a geographical basis, inflows of $143 million emanated from the United States, $2 million from the
United Kingdom, $38 million from other European countries and $1 million from all other countries.
Foreign investment in long-term Canadian securities gave rise to inflows of $142 million.
ceeds of $278 million from the sale abroad of new Canadian issues was up from the corresponding figi r
of $222 million in the previous quarter. The Canadian capital market also saw a high level of activity
which tested the capacity of the market to absorb the issues offered. A cutback of $40 million in the
size of one large corporate issue while in distribution did, in fact, occur. Some easing of monetary
conditions probably influenced long-term borrowing in the quarter, although the largest reductions in
interest rates occurred in the short-term end of the market. The relatively heavy demand for long-term
capital might have encouraged Canadians to turn to foreign sources to meet their borrowing requirements,
however, voluntary restraint practised by Canadians in borrowing funds abroad continued to have an
effect. The $278 million inflow during the quarter (which included net proceeds from the United States
of $127 million resulting from delayed delivery of bonds offered in earlier periods) was markedly less
than the $2 billion annual rate which prevailed prior to mid-1970.
New Issues of Canadian Bonds Sold to
United States Residents
Offer- De-Undeingsliveries livered(l)
millions of dollars
Period
1969
1970
Borrowing abroad by provincial governments and their agencies increased as
deliveries of direct and guaranteed provincial
issues rose to $197 million from $18 million
in the fourth quarter of 1970. The inflow
from corporate issues was down to $68 million
from the fourth quarter estimate of $169 million. However, the fourth quarter figure
included refinancing of a large outstanding
bank debt by a bond issue, and resulted in
an offsetting effect with no net movement of
funds in the balance of payments. Access of
Canadian borrowers to United States capital
markets under existing arrangements was continued by the maintenance of an exemption
for Canadian new issues when the Interest
Equalization Tax legislation was extended in
March.
..........
1,145
656
1,288
1,004
771
423
1970IQ
IIQ....
IIIQ
IVQ....
361
26
189
80
420
134
281
169
712
604
512
423
1971I Q.. .
55
182
296
..........
....
....
1) At end of period.
Net purchases of outstanding Canadian
securities gave rise to outflows of $49 million, compared with $32 million in the previous quarter. Outflows also arose for the
retirement of Canadian securities held by
non-residents, totalling $87 million in the
first quarter of 1971 as against $99 million
in the fourth quarter of 1970.
PORTFOLIO SECURITY TRANSACTIONS
MILLIONS
DOLTARS
600
CANtDIAN SECURITIES
500
400
Transactions in foreign securities
resulted in net long-term inflows of $42 million, after net outflows of $103 million in
the fourth quarter of 1970. Trading in
outstanding issues accounted for $49 million
of total inflows, a swing of $150 million
from the net outflow in the previous quarter.
Canadian purchases of new issues of foreign
securities gave rise to an outflow of $10
million, while inflows for the retirement of
foreign securities held by Canadians were
estimated at $3 million.
300
200
00
+
0
tsr.:
Outflow
200
200 -
FOREIGN SECURITIES
FbiF-1
+
00—
200—II
III
IV1
Other Capital Flows in Long-term Forms
-
II III IVI
96919701971
-
Disbursements by the Canadian GovemInent under intergovernmental loan prograins totalled over $23 million in the firt
quarter of 1971. Geographically, over 75
per cent of these disbursements went to Asia
A subscription to the Caribbean Regional
Development Bank amounted to almost $1 million. Canada received principal repayments
of $8 million on intergovernmental loans
extended earlier.
S
- 13 -
Export Credits(l) Extended Directly or Indirectly at Risk of the Government of Canada
areaBy commodity
Less developed
countries
CentrallyOther
Developed
plannedWheat comodicountries countriesties
Non Sterling $terling
By source of
financing
PeriodTotal
Govern Private
ment
millions of dollars
Credits extended
1969 ...............................
1970 ...............................
177
327
I Q .........................
II Q .........................
III Q .........................
IVQ .........................
49
77
110
91
Q .........................
52
1970
1971
1
1
1
28
29
5197
173124
101
190
76
137
149
172
28
155
1
6
14
5
4
1726
2736
7035
5927
32
45
70
43
17
32
40
48
37
54
47
34
12
23
63
57
6
8
2216
23
29
41
11
-
Credits repaid
"9 ...............................
170 ...............................
168
191
6
3
5
9
41116
44135
119
136
49
55
105
148
63
43
I Q .........................
IIQ .........................
III Q .........................
Iv Q .........................
57
40
43
51
1
1
1
4
1
2
2
1240
1226
931
1138
40
26
32
38
17
14
11
13
46
28
33
41
11
12
10
10
t q .........................
25
1
2
1210
10
15
14
11
1)70
1971
-
Net credits extended
1969
1970
1970
1971
...............................
...............................
+ 9
+ 136
—5
—2
+ 23
+ 20
+ 10—19
+ 129—11
—18
+ 54
+ 27
+ 82
+ 44
+ 24
- 35
+ 112
—1
—1
—1
+ 1
+ 2
+ 13
+ 3
+ 2
+
+
+
+
5—14
15+ 10
61+4
48- 11
- 8
+ 19
+ 38
+ 5
+ 18
+ 29
+ 35
- 9
+ 26
+ 14
- 7
+
+
+
+
+ 5
+6
+
10+6
+ 13
+ 14
+ 27
III Q
.........................
Iv q
.........................
- 8
+37
+67
+40
I q
.........................
+27
I Q
II Q
.........................
.........................
1
11
53
47
-
Credits outstanding
March 31, 1971 .....................660 1116543945254406458202
I) Medium and long-term.
Credi tp c(ten)led r(1'rtcnt
P
rip! tpl outflow.
- 14 -
Disbursements of Government of Canada Bilateral Soft Loans, and Subscriptionand Advances to International Investment Agencies
1970197]
19691970
IQIIQIIIQIVQIQ
millions of dollars
Sterling area:
Western Hemisphere
Africa
Asia
.............
.........................
...........................
Non-sterling area:
Western Hemisphere
Other
.............
..........................
International investment agencies
Totals
........................
3512111
2611131
48942028301618
47
21
1
-
1
-
2
1
1
2
1
-
3029
2
27
1
1
1
89142
25
59
35
23
24
Transactions during the quarter arising from the financing of medium and long-term export
credits extended from Canada directly or indirectly at the risk of the Government led to a net capital
outflow of $27 million or $13 million less than the preceding quarterly amount of $40 million. Net
disbursements outstanding totalled $660 million by the end of the first quarter.
The remaining capital movements in long-term forms, which includO hunk and other long-term
loans, mortgage invest- merits and movements of insurance funds, I 1 LuutIL floi" A 1thou, .- - olJ
I
I
II
I LuIi)I
Capital movements in short-term forms (apart from changes in net official monetary assets) led
to a net capital outflow of $363 million in the first quarter of 1971 some $85 million less than in the
previous quarter.
Canadian dollar deposits of non-residents rose by $51 million in the quarter. Residents of the
United States, the United Kingdom, and all other countries increased their holdings by $34 million,
$5 million and $12 million, respectively. Government of Canada demand liabilities in the form of
interest free demand notes issued to international investment agencies rose by less than half a million
dollars during the quarter.
6,000 -
-A decrease by Canadian residents of
their holdings of foreign currency bank
*-balances and other short-term funds abroad
-produced a large net capital inflow of $568
4,000 - million. A principal factor in this movement
was the reduction of Canadian holdings of
3,000
swapped deposits which fell significantly by
*March3l
2,000 - -$459 million to $1,231 million at the end
of the quarter
1,000 - Foreign investment in Canadian money
I
0 I
market paper fell by $136 million in the first
196319651967196971
quarter of 1971, a swing of $289 million from
1964196619681970the fourth quarter inflow of $153 million.
This reduction followed a substantial buildup of non-resident investment in these instruments which started in the spring of 1970 when the premium
on the forward Canadian dollar helped to encourage inward arbitrage movements. Interest rates dipped
sharply during the quarter as the Bank Rate was lowered in two stages from 6 per cent to 5 1/4 per
cent, while the yield on Government of Canada 91-day treasury bills fell to 2.99 per cent in mid-March,
the lowest level in over nine years. A downward trend in interest rates also occured in the United
5,000 -
IIIII'
S
- 15 -
:;l.ates, and on an unhedged basis short-term yields there were generally lower than in Canada. This
tferential was, for most of the quarter, slightly more than offset by a discount on the forward
-iadian dollar and in the absence of any positive inducement to non-residents to engage in arbitrage
Limsactions, was consistent with the run-down of foreign investment. Uncertainty about some foreign
currencies was an additional factor affecting the international movement of funds. A temporary
reversal of the trend towards lower interest rates in Canada occurred in February, increasing the
hedged return on investment in Canada and coinciding with inflows during the month from net sales of
Canadian paper to non-residents.
S
Non-resident holdings of Coverninent of Canada treasury bills increased by $1 million during the
quarter, after a reduction of $14 million in the fourth quarter of 1970. Although the value of securities traded in most classes of paper was down from the previous year's levels, the decline in treasury bills was especially marked: gross sales of $31 million in the first quarter of 1971 compared
with an average quarterly rate of approximately $200 million in 1970.
REPRESENTATIVE INTEREST RATES
%
2 -
fUROPE
-
--'
-8
: ;
.7
ET '
6
CIIAIA
.5
.4
40lIIIII
III
Il
111111111
I
0J
196919701971
5
j
J
J0
196919701971
INTEREST RATE DIFFERENTIALS
LONG TO SHORT-TERM
Notes I SHORT-TERM RATES
Europe: Euro-dollar rates defined as the prime banksbid rate for
3 month deposits in London (near or at the e,d of the mOnth).
4
United States: Open-morket rates, New-York City; finance company
paper placed directly, 3-6 month.
Canada: 90-day finance company paper.
3-
2. LONG-TERM RATES
Europe: International bond yields, long-term issues at or near end
of month; European companies, in US dollar.
United States; Yields, domestic corporate bonds(Moodys,Aoa).
2
Canada: Corporate bond yields.
+
0
Sources:World Financial Markets Morgan Guaranty Trust Company of
New-York; "Survey of Current Business," US department of
Commerce, Bank of Canad] Statisticat Summary"
2
3
4 J
1''
H
I0
%
%
2
LONG-TERM SHORT-TERM
J J
P
- 16 -
Transactions in finance company paper resulted in a net outflow of $57 million, compared with
a net inflow of $34 million in the fourth quarter of 1970. The United States was the recipient of $2
million of the outflow, the United Kingdom of $9 million, and other countries (including internation:
institutions) of $26 million.
Substantial inflows in the fourth quarter of 1970 resulting from unusually heavy trading in
commercial paper and "Other" short-term paper (including motes of banks, mortgage loan companies, and
junior levels of government) were only partially reversed in the first quarter of 1971. First quarter
outflows of $37 million for the net re-purchase or redemption of commercial paper compared with net
sales of $72 million in the previous period, while a net outflow of $43 million in "Other" short-term
paper was again significantly less than the $61 million net inflow in the fourth quarter of 1970.
There was an increase in non-resident claims on Canadian finance companies in the form of bank
loans and inter-company accounts totalling $8 million in the first quarter.
All other transactions led to a net capital outflow of $854 million. Canadian dollar deposits
placed by Canadian institutions in overseas banks rose sharply during the quarter and accounted for a
major part of the $298 million outflow in Canadian dollar claims on non-residents. However, early in
March, the Bank of Canada indicated that these transfers of Canadian dollar deposits to countries
except the United States were to be regarded as subject to the guidelines covering operations in foreign
currency introduced in 1968. Short-term foreign currency bank borrowings by Canadians led to a small
net inflow of $26 million compared to an outflow of $156 million in the preceding quarter. Other
identified items included in this account show large outflows related to intercompany accounts receivable. However the largest component in the first quarter was the balancing item representing the
difference between the direct measurements of the current and capital accounts.
Other Short-term Capital Transactions
Char tered
bank
Cana-
Period
-
1970.......
1970I Q
II Q
III Q
Shorem
r
foreign
currency
bankOther(l)Total
dollar
borrowing
claims
b
on nonCanadians
residents
millions of dollars
-38
+ 204- 544- 378
+38
-41- 402- 405
+ 227+95+ 312
-10
+2
+ 174—104+72
IV Q
-68
- 156- 133- 357
1971I Q
- 298
+26—582- 854
(1)Includes inter-company and other accounts
receivable and payable and balancing item
representing the difference between recorded
measures of current and capital accounts.
Official International Monetary Assets and
Liabilities
Canada's net official monetary assiLtotalled US $4 845 million on March 31.HI
an increase of US $166 million over LI
quarter.
On January 1, 1971, Canada elected to
accept its second allocation (US $118 million)
of Special Drawing Rights, bringing Canada s
total SDR's to US $300 million at the end of
the quarter.
Other changes affecting Canada's
international reserves were an increase in
United States dollars holdings of US $131
million over the quarter, increases of
slightly less than half a million in both
other convertible currencies and gold and a
decrease in Canada's reserve position with
the International Monetary Fund of US $83
million.The latter item was due to repayments to the IMP by the United Kingdom and
other countries for previous purchases leaving Canada's IMP position at US $586 million.
In Canadian dollar terms these transactions
led to an overall increase during the quarter
of $167 million in Canada's net official
monetary assets.
The spot value of the Canadian dollar on the foreign exchange markets rose moderately in the
quarter reaching a peak in late February as the United States dollar dipped to 100.25 Canadian cents
for one United States dollar (the lowest point in ten years). The highest price during the quarter -:i
101.59 Canadian cents In nnnl y inn-vu- v.II nnt vnthe Unit &d Stntes del 1 er closed the quarter
at 100.75 Canadian ccnt-,
- 17 -
The forward Canadian dollar for delivery in 90 days went from a premium of 1.129
per cent (rate per annum) at the end of
February to reach a discount of about .28 per
cent in the second half of March. A premium
on the forward Canadian dollar increases a
non-resident's yield on a Canadian dollar
investment on a hedged basis while a discount
reduces the total return.
Other Currencies in Canada(2)
United States Dollar in Canada(l)
'eriod
High
Low
Close
Noon
average
Pound
sterling
1970
1971
......................
......................
I
II
III
IV
Q ................
Q ................
Q ................
Q ................
I Q ................
January
February
March
...................
..................
.....................
Deutschemark
Swiss
franc
Japanese
yen
Canadian cents
Canadian cents
1969
1970
French
franc
108.25
107.47
107.25
100.31
107.28
101.13
107.68
104.40
257.39
250.16
20.78
18.89
27.46
28.63
24.97
24.22
.3005
.2916
107.38
103.59
102.53
107.25
102.56
100.31
100.94
107.25
103.44
101.84
101.13
107.28
106.10
102.32
101.96
257.86
254.92
244.35
243.63
19.34
19.21
18.53
18.47
29.13
29.13
28.17
28.05
24.91
24.63
23.77
23.60
.3000
.2960
.2854
.2851
101 . 59
100.25
100.75
100.84
243.46
18.28
27.76
23.45
.2820
107 . 47
101.59 100.75 100.84 101.16 243.3918.3327.8223.50.2826
100.94 100.25 100.69 100.75 243.6018.2627.7523.44.2819
100.88 100.28 100.75 100.63 243.4018.2527.7123.40.2816
(1) Spot rates prevailing on the interbank market in Canada.
(2) Average spot rates based on nominal quotations in terms of United States dollars, converted into
Canadian dollars at noon Ottawa time.
- 18 -
in a series of pubtcaLions relating to their consti bent parts. Iliese nave now reached a stage ol
evolution where they can be termed a "System of National Accounts". For purposes of identification,
all publications (containing tables of statistics, descriptions of conceptual frameworks, and descriptions of sources and methods) which make up this System will now carry the term "System of National
Accounts" as a general title.
The System of National Accounts in Canada consists of several parts. The annual and quarterly
Income and Expenditure Accounts (included with Catalogue Nos. carrying the prefix 13) were, historically
speaking, the first set of statistics to be referred to with the title "National Accounts" (National
Accounts, Income and Expenditure). The Balance of International Payments data, (Catalogue Nos. with
prefix 67), in their more summary form are also part of the System of National Accounts and they, in
fact, pre-date the income and Expenditure Accounts.
Greatly expanded structural detail on industries and on goods and services is portrayed in the
Input-Output Tables of the System (Catalogue Nos. with prefix 15). The Indexes of Real Domestic Product
by Industry (included with Catalogue Nos. carrying the prefix 61) provide "constant dollar" measures
of the contribution of each industry to gross domestic product at factor cost. Inputs and outputs are
related in Productivity Studies (Catalogue Nos. with prefix 14).
Both the Input-Output Tables and Indexes of Real Domestic Product by Industry use the establishment as the primary unit of industrial production. Measures of financial transactions are provided by
the Financial Flow Accounts (Catalogue Nos. with prefix 13). Types of lenders and financial instruments
are the primary detail in these statistics, and the legal entity is the main unit of classification of
transactors. Also, provision is made in the System for incorporation of balance sheet (wealth)
estimates when such data are sufficiently developed.
The System of National Accounts provides an overall conceptually integrated framework in which
the various parts can be considered as interrelated sub-systems. At present, direct comparisons axnoI1d1
those parts which use the establishment as the basic unit and those which use the legal entity can
carried out only at highly aggregated levels of data. However, the Dominion Bureau of Statistics is
continuing research on enterprise-company-establishment relationships; it may eventually be feasible to
reclassify the data which are on one basis (say the establishment basis) to correspond to the units
employed on another (the company or the enterprise basis).
In its broad outline, the Canadian System of National Accounts bears a close relationship to the
international standard as described in the United Nations publication, "A System of National Accounts"
(Studies in Methods, Series F., No. 2, Rev. 3, Statistical Office, Department of Economic and Social
Affairs, United Nations, New York, 1968). In the future, a document on the conceptual framework of the
Canadian System of National Accounts will be prepared for publication by the Dominion Bureau of Statistics. This document will furnish the broad theoretical outline of the System. The finer conceptual
details, the statistical tables, and the descriptions of sources and methods as they pertain to the
individual parts of the System, will appear in the various regular and occasional publications relating
to those parts.
A reconciliation statement of the current account of the Canadian balance of payments and
exports and imports of goods and services as used in the Income and Expenditure Accounts is shown in
Table 7.
STATISTICS OF THE CANADIAN
BALANCE OF INTERNATIONAL PAYMENTS
TABL ES
- 20 -
TABLE 1. CANADIAN BALANCE OF INTERNATIONAL PAYMENTS (1
Current Account
Line
No.
Acct.
No.
1969
______________________________
III
I tern
-
1
1
3
4
5
6
(part)11
7
(part)ll
12
12
1
4
5
6
(part)11
7
(part)ll
9
12
C
3,936
4,525
31
86
88
203
291
699
28
250
112
241
307
938
27
581
85
235
308
1,236
22
157
129
257
329
894
25
107
112
234
337
815
26
292
121
270
349
1,058
4,166
4,747
4,781
4,947
4,751
5,583
62
22
100
23
109
23
92
23
72
24
101
24
4,250
4,870
4,913
5,062
4,847
5,708
3,230
3,718
3,312
3,754
3,305
3,875
268
298
207
410
... ,183
341
318
267
416
1,342
476
294
251
424
1,445
207
435
266
444
1,352
299
388
225
456
1,368
373
352
262
455
1,442
.,413
4
5,060
4,757
5,106
4,673
5,317
Transfer payments
Inheritances and emigrants'funds.........................40
Personal andinstitutional rernittances(3) .................45
Official contributions ....................................16
44
42
49
58
42
46
52
43
33
42
46
31
49
48
42
. 4. 514
5,195
4,903
5,234
4,792
5,456
.+ 237
+91
+ 233
+ 299
+ 631
+ 650
......................
+28
....................................................
-91
+22
-50
306
-9
-115
- 458
+25
-192
-276
+ 9
-119
- 553
-231
+8
-106
- 384
Service receipts
Goldproduction available forexport
Travel
Interestanddividends
Freightandshipping
Otherservicereceipts
Totalservicereceipts
..........................
........................................................
........................................
.........................................
......................................
Transfer receipts
Inheritances andimmigrants'funds
Personalandinstitutional remlttances(3)
.............
............................
Totalcurrentreceipts
.....................
..............................
Merchandise imports(adjusted) (2)
Service payments
Travel
Interestanddividends Freightandshipping
Otherservicepayments
Totalservicepayments
............................
......................................................
......................................
........................................
......................................
.................................
Totalcurrentpayments ............
.............................
Current account balance
1
Merchandise trade
.......................
Service transactions
Gold production available for export Travel
Interestanddividends Freight andshipping
Otherservicetransactions
Balance onservicetransactions
24
25
26
27
28
29
.
..................
.........................
+31
-182
-210
4
-119
- 484
-206
-26
-109
- 404
+27
+ 105
-209
-16
-116
- 209
.........................
-247
-313
+24
-159
+78
+ 266
-17
-12
-14
-13
-23
-14
-264
-325
+10
- 172
+55
+ 252
....................................
......................................
................................
30
Balance on goods and services
31
32
4,053
Sub-totals,imports of goods and services
22
23
3,545
.............
Current payments
18
19
20
21
3,809
.............
Sub-totals,exports of goods and services B
13
14
15
16
17
.. 3,467
Merchandise exports(adjusted)(2)
....................................
11
I1
Current receipts
8
9
10
f
millions of dollirs
A
2
3
4
5
6
7
1970
Nettransfers
4
.............................................
Totalcurrent account balance .......................
+26
-81
(1) Data for 1968, 1969 and 1970 are preliminary.
(2) Trade of Canada figures with certain valuation and timing adjustments appropriate for balance of payments - see Table 6.
- 21 -
:Allf.r 1. ANAI'L'7 SALANCE OF INTERNATIONAL PAYMENTS)
irent Account
I
1969
I
III
II
III
Four quarters
ended
I Q 1971
1970
IV
Line
No.
Act
No.
millions of dollars
A
4,048
4,332
4,099
14,874
16,841
22
641
123
274
352
1,412
22
179
157
270
339
967
22
113
137
243
329
844
108
1,074
414
936
1,235
3,767
95
1,219
513
1,048
1,377
4,252
5,460
5,299
4,943
18,641
21,093
122
25
93
26
89
29
363
91
388
99
5,607
5,418
5,061
19,095
21,580
17,004
1
92
3
1,225
4
538
5
1,057
6
1,369 (part)11
4,281
21,285
1
2
3
4
5
6
7
8
405
7
104 (part)1l
21,794
9
10
12
11
1
12
B
11
3,342
1, 399
14,014
13,839
552
353
265
458
1,628
230
431
260
489
1,410
314
372
232
468
1,386
1,292
1,345
991
1,694
5,322
1,454
1,524
1,012
1,858
5,848
4,945
4,752
4,785
19,336
19,687
62
43
79
58
47
49
41
55
38
194
172
144
211
184
201
5,129
4,906
4,919
19,846
20,283
i ' ll -
13,933
4
1,469
5
1,508
6
1,019
1,870 (part)11
5,866
13
14
15
16
17
18
19,799
7
210
193 (part)11
9
208
20,410
19
20
21
12
22
1
23
C
+ 731
+ 990
+ 700
+860
+ 3,002
+ 3,071
+22
+89
+22
-51
+22
+95
-235
-230
+ 9
- 106
-216
-274
+10
-150
-443
+108
-218
-931
-55
-459
+92
-244
-970
+38
-501
-201
- 235
+11
-139
-542
-1,555
-1,011
+36
-481
-1,596
-1,585
24
25
26
27
28
29
+ 1,486
30
31
1-515
+ 547
+ 158
-695
+ 1,406
-37
-35
-16
-56
-109
-102
78
+ 512
+ 142
-751
+ 1,297
+ 1,384
4
32
I,,rsonal and institutional remittances include pension payments. Prior to I Quarter 1970 publications, the total of this
line was included in "all other current" transactions.
NIYIE: Final revisions for 1970 travel expenditures will be published in the second quarter 1971 report.
-
I.
22
-
:1
Capital Account
Line
No.
Acct.
No.
i I
+
item
-
_[TIIIIT
millions of dollars
—
U
1
2
33
34
Direct investment(S)
InCanada.................................................... + 156
Abroad..................................................... ..
52
-
Portfolio transactions
Canadian securities
Outstanding bonds......................................... + 17
Outstanding stocks....................................... . .+37
Newissues............................................... . .+ 616
Retirements...............................................
84
Foreign securities
Ou tstanding issues
..
50
Newissues
..
11
Retirements
..+11
35
36
37
38
3.1
3.2
4
5
39
40
41
6
7
8
42
43
9
10
44
11
Columbia RiverTreaty...........................................
45
12
Export credits directly or indirectly at risk of the
Government ofCanada
..
Otherlong-term capital transactions
..
-
.......................................
-
-
...............................................
—
-
..............................................
Government of Canada
Advances
..
11
Repayments....................................................
47
E1
D 17.1
-
-
+79
25
+ 187
75
-
+ 200
150
+ 155
20
12
4
+ 565
53
+ 3
+ 4
24
+ 370
—135
-
26
83
+ 208
—239
+ 105
6
+3
+ 116
S
+2
-
-
-
-
6
21
+19
-
+65
5
+2
43
+2
-
-
-
-
-
-
-
20
+20
-
+32
15
-
4
+ 535
87
-
-
-
-
-
+82
5
+2
-
+ 532
+ 596
+ 569
± 644
-
—568
-
+ 209
—
Resident holdings of foreign bank balances and other shorttermfundsabroad.......................................... ..-156
49
50
SI
52
53
54
55
14.1
14.2
14.3
1 7.2a
17.3
17.2b
17.4
Non-resident holdings of Canadian:
Dollardeposits
..
11
Governmentdemandliabilities
..
2
Treasurybills
..+13
Coesnercial paper
..
1
Financecompanypaper....................................... + 159
Othershort-te rm paper......................................
2
Otherfinancecompany obligations........................... +23
56
17.5
Othershort-te rm capital transactions(6)......................
............................................
..............................
-
-
.............................................
...........................................
-
-
-
-
+
..+ 560
...........................................
-
~82
-
Balance of capital movements in long-term forms
(lines 33 46)
59
+7
-
8
+51
-
25
-
+
56
.........................
-
+27
-
-
-
+7
13
-
48
-
-
-
...................................................
.......................................
13
-
6
+44
+ 516
124
Loans and subscriptions
46
+ 233
103
30
+25
30
10
+23
+71
21
+28
-
-
-
621
-
25
+13
15
71
5
+3
+SO
3
+19
+35
+17
+25
+62
-
4
+1
-
-
-
-
357
+ 221
+88
-
181
-
44
+26
2
9
-
-
+7
-
-
-
75
I
52
5
+33
+27
6
7
+ 174
29
-
-
-
+74
-
405
+ 312
57
E2
Balance of capital movements in short-te rm fo rm s
(lines48-56)........................................... -334
—261
—611
—235
—305
+ 573
58
E3
Totalnetcapital balance................................. + 226
+ 271
-
15
+ 334
+ 339
+ 529
59
Allocation of Special Drawing Rights ..........................
H
60
61
62
4
5
6
. . .
Net official monetary assets(7):
Official international reserves .............................
38
Official monetaryliabilities ..............................
Netofficial mo neta ry assets..............................
. 38
—
...
-
—
—
54
-
-
54
...
-
5
—
-
.. .
+ 162
-
5
+ 162
+ 133
+ 527
-
+I
-
+ 527
+
or capitaL rrom c.anaaa ana represents an increase in nosoings or assi
abroad or a reduction in liabilities to non-residents.
(5) Exclusive of undistributed profits.
rn.U
SUU C.
eua.s an oucciow
- 23 -
RLF: 1. CANADIAN BA1JNCE OY INTERNATIONAL PAY 1 - :oncluded
pi LL Account 4)
1970
1971
I
U
1970
1969
IIITT
IV
our quarters
ended
1 Q 1971
Acct.
No.
Line
No.
m illions of dollars
D
+ 115
+15
+ 290
-60
+ 285
- 145
+655
-255
+760
-215
+845
-210
1
2
33
34
-17
-37
+ 304
- 49
-1
-31
+ 222
-99
- 6
-43
+ 278
-87
+ 2
+53
+ 2,067
-396
-40
-155
+ 1,269
-474
-50
-194
+ 1,012
-474
31
3.2
4
5
35
36
37
38
-20
-10
—101
-5
+ 3
+49
-10
+3
+114
-43
+35
+77
-25
+ 9
+10
-30
+10
6
7
8
39
40
61
-23
-24
+ 8
-89
+22
-142
+36
-141
+44
9
10
42
43
+32
+31
+31
11
44
+2
-35
-
+29
-
+31
67
-40
-27
- 9
-136
-171
12
45
- 150
-12
+69
-181
-243
13
66
+ 149
+65
+ 269
+ 2,257
+814
+439
E1
47
- 470
- 107
+ 568
- 1,604
-376
-14
D 17.1
48
-39
+7
+ 1
-37
- 44 114
-20
+72
+75
+34
+61
+18
-61
-40
+51
+ 1
-37
-57
-43
+ 8
+60
-34
+35
+42
+176
-3
-f116
+27
-11
-73
+52
+208
+49
-79
+52
- 9
-63
+ 8
+226
+ 7
-19
14.1
16.2
14.3
17.2a
17.3
17.2b
17.4
49
50
51
52
53
54
55
+72
- 357
- 854
-229
-378
-827
17.5
56
—401
—448
—363
—1,441
-581
-639
E2
57
—252
—383
-94
+816
+233
-200
E3
58
.
+133
+119
+65
+65
+ 1,662
+ I
+ 1,663
+ 1,302
+ 1
+ 1,303
-
-
-
-
+ 119
..
59
H
725
1
I226
+ 129
+ 129
+ 167
+ 167
,ludes balancing Item representing difference between recorded measures ot current and capital accounts and
rrors and omissions from both accounts.
(/) For detailed composition of official monetary assets see Table 4.
4
5
6
60
61
62
- 24 -
TABLE 2. CANADIAN BALANCE OF IP(rERNATI0NAL
Current Account - Seasonally AdjuSt€
Line
No.
Acct.
No.
item
Current receipts
I
3
4
5
6
(part)ll
B
9
10
7
(part)11
12
11
12
1
4
5
6
(part)11
18
19
20
21
7
(part)li
9
12
22
1
24
25
26
27
28
29
3,637
3,905
Service receipts
Gold production available for export ........................ 30
TraveL..................................................... 255
interest and dividends..................................... 9 7
Freight and shipping ....................................... 23 0
Other servicereceipts..................................... 2 8 3
Totalservicereceipts ................................... .895
28
268
115
235
298
944
27
263
103
225
312
930
23
288
99
246
342
998
Sub-totals, exports of goods and Services .............. 6, 6 13
4,558
4,567
4,903
Transfer receipts
inheritances and issnigrants' funds ......................... 88
Personal and institutional renhittonces(i) .................. 22
90
23
86
23
99
23
Total current receipts ...............................4,723
4,671
4,676
5,025
Merchandise imports(adjusted)(l)............................ 3,448
3,450
3,5"
Service payments
Travel.....................................................304
Interest and dividends..................................... 3 25
Freight and shipping ....................................... 241
Other service payments ..................................... 399
Totalservice payments ................................... 1,2 69
323
335
256
413
1,327
343
333
239
432
1,347
2
450
1,379
Sub-totals, imports of goods and services .............. 4,717
4,777
4,850
4,992
Transfer payments
Inheritances and emigrants funds .......................... 4 8
Personal and institutional remittances(i) ..................43
Officialcontributions..................................... 29
48
41
37
49
43
38
49
45
40
Total current payments ............................... 4, 837
4,903
4,980
5,126
Merchandisetrade............................................ + 270
+
164
+ 134
+
Service transactions
Gold production available for export ....................... +30
Travel.....................................................49
Interest anddividends .................................... .-228
Freight and shipping .......................................-11
Other service transactions................................. - 116
Total service transactions ............................... - 374
+28
-55
- 220
-21
—115
- 383
+27
-80
—230
-14
—120
- 417
+23
-34
—253
- 9
- 108
- 381
.-104
—219
—283
-89
Nettransfers .............................................. -10
-13
-21
-12
-
-
-
Balance on goods and services.........................
30
31
32
3,614
Current account balance
C
23
Merchandise exports (adjusted)(l)............................3,718
Current payments
B
13
14
15
16
17
IV
millions of dollars
A
2
3
4
5
6
7
I
i
4
Total current account balance ........................- 114
232
(1) Trade of Canada figures with certain valuation and timing adjustments appropriate br balance Ot payInenu.
304
292
25 -
S
S
TABLE 2. CANADIAN BALANCE OF INTI3INATIONAL PAYMENTS
Current Account - Seasonally Adjusted
Line
No.
millions of dollars
4,246
1 1 1 1
A
4,207
4,206
4,182
4,347
24
306
121
264
326
1,041
26
302
126
264
339
1,057
22
291
142
262
358
1,075
23
320
124
258
354
1,079
21
326
151
273
320
1,091
5,287
5,264
5,281
5,261
5,438
101
24
92
24
96
25
99
26
123
30
5,412
5,380
5,402
5,386
5,591
3
4
5
6
(part)11
2
3
4
5
6
7
8
7
(part)11
9
10
12
11
1
12
B
j,505
3,591
3,526
3,217
3,613
260
441
1,454
360
365
251
453
1,429
386
391
253
469
1,499
369
354
248
495
1,466
353
398
268
455
1,474
4,959
5,020
5,025
4,683
5,087
51
44
43
53
47
34
53
45
68
54
48
56
49
52
51
5,097
5,154
5,191
4,841
5,239
4
5
6
(part)11
13
14
15
16
17
18
7
(part)11
9
19
20
21
12
22
1
23
C
+ 741
+ 616
+ 680
+24
-33
- 293
-58
- 239
+26
+22
+4
- 115
- 413
+13
- 114
- 372
+9
- 111
- 424
230
+10
- 141
- 387
- 135
- 383
24
25
26
27
28
29
+ 328
+ 244
+ 256
+ 578
+ 351
30
-13
-18
-45
-33
+ 1
31
+ 315
+ 226
+ 211
+ 545
+ 352
-95
- 249
+ 965
+23
-49
+ 734
-4-21
-27
- 247
+ 5
.Personal and Institutional remittances include pension payments.
line was included in "all other current" transactions.
4
32
prior to I Quarter 1970 publications, the total of this
- 26 -
TABLE 3. CANADIAN BALANCE OF INTERNATIONAL PATh1
By Area
1969
1970
Item
11
I
111IV
III
millions of dollars
I
2
3
United States
Merchandise exports (adjusted)............... ..2,459
Non-merchandisereceipts(1,4) ..................457
Totalcurrent receipts..................... ..2. 916
2,666
658
3,324
2,6392,981
2,938
2,436
946 604 510715
3,1493,696
3,542
3,382
4
S
6
Merchandiseimports(adjusted) ............... ..2,454
Non-merchandise payments(l).....................880
Totalcurrentpayments..................... ..3. 334
2,677
989
3,666
2,4642,799
2,711 2,290
1,018 986 9791,023
3,4433,822
3,697
3,308
7
S
9
Balance
Merchandisetrade.......................... +5
- 423
Non-merchandise trade.....................
418
Currentaccountbalance................
- 11
- 331
- 342
+175+182
+ 146
+ 227
- 382—469—308
- 72
- 155
—294—126
+ 74
10
Ii.
12
Capital movements( 2)
Inlong-termforms........................+ 376
- 160
Inshort-tensforms...................... .
+ 216
Total net capital balance ...........
+ 357
+ 277
+ 634
+563+104
+ 432
+ 467
- 159—151+436
- 498
+ 412+ y()
+ 273
- 31
13
14
15
United Kingdom
Merchandise exports (adjusted) ................289
Non-merchandise receipts(l) ...................112
TotalCurrentreceipts......................401
290
133
423
272269 33
140 148 139
474570
412
417
16
17
18
Merchandiseimports(adjusted)................172
Non-merchandise payments(l) ...................105
Totalcurrentpayments ......................277
231
136
367
203180 168201
174 129 128160
296361
309
377
19
20
21
Balance
. 117
Merchandisetrade........................ .
Non-merchandisetrade.................... ..+7
Current accountbalance................ ..+ 124
+ 59
—3
+ 56
+ 69 + 89 +167+214
- 34+ 19+11- 5
+178+209
+ 108
+ 35
22
23
24
Capital movemets(2)
r,
inlong-termforms........................+ 10
- 348
inshort-termforms...................... .
- 338
Total net capital balance ...........
+ ii
- 654
- 643
+ 65+ 55
- 24
+ 59
- 76 - 55- 79
- 275
+ 10- 24
- 17
- 299
25
26
27
Rest of the Sterling Area
.
Merchandiseexports (adjusted)................142
. .51
Non-merchandise receipts(l)...................
Totalcurrentreceipts ..................... ..193
155
72
227
28
29
30
Merchandiseimports(adjusted) .................. 95
Non-merchandisepayments(l) .....................53
Totalcurrentpayments ......................148
151
76
227
31
32
33
Balance
Merchandise trade........................ .
Non-merchandise trade.....................
Current account balance.................
See footnotes at the end of table.
47
-2
+45
+ 4
—4
181186
156
165 19 71 5967
240253
227
244
173108189
168
62 58 6768
175257
231
230
+ 73- 3- 17
+ 13 —8+ 17
- 4
+ 65+ 14
C
- 27 -
r\BLE 3. CAI4\DIAN b,\LANCE OF 1NTERNAT1ON.L PAYMENTS
By Area
1971
19/0
1969
111iv
1
11
111
tour quarters
ended
1970
I Q 1971
lv
___________________________________
millions of dollars
________________ No,
_______________
2,529
1,066
3,595
2,804
634
3,438
2,797
10,499
2,665
13,164
10,9
2,925
13,878
11,111
549
3,346
2,964
14,075
2
3
2,284
3,385
2,264
1,026
3,290
2,489
1,002
3,491
10,132
3,873
14,005
9,811
4,129
13,940
9,836
4,152
13,988
4
5
6
+ 245
-35
+ 210
+ 540
- 392
+ 148
+ 308
- 453
.- 145
+367
- 1,208
-841
+ 1,142
- 1,204
-62
+ 1,275
- 1,188
+87
7
8
9
+ 212
-399
- 187
+79
-129
-50
+ 258
+ 134
+ 392
+ 1,632
-540
+ 1,092
+958
-243
+715
+653
+42
+695
10
11
12
13
531
386
170
556
319
120
439
1,120
533
1,653
1,504
627
2,131
1,488
608
2,096
13
14
15
181
210
391
182
137
319
172
119
291
786
544
1,330
732
635
1,367
736
626
1,362
16
17
18
+ 187
-47
+ 140
+ 204
+33
+ 237
+ 147
+ 1
+ 148
+334
-11
+323
+772
-8
+764
+752
-18
+734
19
20
21
+36
+ 251
+ 287
-7
- 362
- 369
+15
- 322
- 307
+56
- 1,353
- 1,297
+149
245
-96
+99
-512
-413
22
23
24
215
79
294
203
68
271
171
74
245
618
273
891
785
273
1,058
775
288
1,063
25
26
27
159
93
252
173
74
247
100
66
166
587
249
836
629
302
931
621
301
922
28
29
30
+56
+30
+71
+31.
+156
+154
31
42
+24
+79
+55
+127
+141
33
1,101
S
1
- 28 -
TABLE 3. CANADIAN BALANCE OF lNTE3NAI
1{-\
By Are,
1969
197 U
No. I Item
111IIIIv
millions of dollars
34
35
36
Other OECD(Europe)(3)
Merchandise exports (adjusted).................. 263
Non-merchandise receipts U)..................... 64
TotaLcurrent receipts ........................ 327
315
87
402
305
90
395
320
79
399
351
92
443
419
106
525
37
38
39
Merchandise imports(adjusted) .................. 214
Non-merchandise payments([)..................... 152
Totalcurrentpayments........................366
311
176
487
283
217
500
314
197
511
238
189
427
317
207
524
+4
+ 113
Ba lance
Merchandisetrade.........................
Non-merchandisetrade.....................
Current account balance.................
+49
-88
-39
-89
-85
+22
-127
-105
+6
-118
112
-97
+16
+ 102
-101
+1
43
44
45
Other Countries
Merchandise exports(adjusted)..................314
Non-merchandisereceipts(L)..................... 68
Totalcurrentreceipts....................... 382
383
83
466
367
86
453
370
85
455
430
86
516
524
114
639
46
47
48
Merchandise imports (adjusted)................. 295
Non-merchandise payments(l)..................... 94
TotaLcurrentpayments ....................... 389
348
100
448
368
120
488
376
110
486
327
124
451
36'
1?
46
49
50
51
Balance
+19
Merchandise trade
-26
Non-merchandise trade
Current accountbalance .................. -7
+35
-17
+18
-1
-34
-35
- 6
-25
-31
+ 103
-38
+65
+ 155
- 9
+ 146
52
53
54
All Countries
Merchandise exports (adjusted) ................. 3,467
Non-merchandisereceipts(1,4)................... 783
Totalcurrent receipts.......................4,250
3,809
1,061
4,870
3,545
1,368
4,913
4,053
1,009
5,062
3,936
911
4,847
4,525
1,183
5,708
3,230
1,284
4,514
3,718
1,477
5,195
3,312
1,591
4,903
3,754
1,480
5,234
3,305
1,487
4,792
3,875
1.581
5,456
58
59
60
Balance
Merchandise trade........................ ..+ 237
-501
Non-merchandise trade.................... .
-264
Current accountbalance
.
+91
-416
-325
+ 233
-223
+10
+ 299
+ 631
-576
+55
+ 650
-398
+ 252
61
62
63
Capital movements
Inlong-term forms ........................
Inshort-termforms.......................
Total net capital balance ...............
- 611
-15
- 235
+ 226
+ 532
- 261
+ 271
+ 334
+ 644
- 305
+ 339
- 44
+ 573
+ 529
64
Allocation of Special Drawing Rights
...
...
...
...
+ 133
65
Change in net official monetary assets
-38
-54
- 5
+ 162
+ 527
40
41
42
55
56
57
.........................
.
.....................
.
Merchandiseimports(adjusted) ...............
Non-merchandisepaymentslI ..................
Totalcurrentpayments.....................
..
..
..
................
+ 560
- 334
+ 596
-471
-172
+ 569
+ 78!
(1) Including transfer receipts/payments.
(2) Capital movements by area on a quarterly basis are available at this time only for Canada's transactions with the Unite
States and the United Kingdom.
- 29 -
ERNATIONAL PAYMENTS - Concluded
rea
1910
1911
1969
111LV1 111111V
Four quarters
1970 ended
1 Q 1971
No
millions of dollars
S
388
112
500
458
92
550
386
91
477
1.203
320
1,523
1,616
402
2,018
1,651
401
2,052
34
35
36
311
259
570
330
196
526
276
206
482
1,122
742
1,864
1,196
851
2,047
1,234
868
2,102
37
38
39
+77
- 147
-70
+ 128
- 104
+24
+ 110
- 115
-5
+81
-422
-341
+420
-449
-29
+417
-467
-50
40
41
42
548
117
65
481
100
581
426
106
532
1,434
322
1,756
1,983
417
2,400
1,979
437
2,416
43
44
45
182
149
531
393
131
524
362
127
489
1,387
424
1,811
1,471
527
'1,998
1,506
530
2,036
46
47
48
+ 166
-32
+ 134
+88
-31
+57
+64
-21
+43
+47
-102
-55
+512
-110
+402
+473
-93
+380
49
50
51
4,048
1,559
5,607
4,332
1,086
5,418
4,099
962
5,061
14,874
4,221
19,095
16,841
4,739
21,580
17,004
4,790
21,794
52
53
54
3,317
1,812
5,129
3,342
1,564
4,906
3,399
1,520
4,919
14,014
5,832
19,846
13,839
6,444
20,283
13,933
6,477
20,410
55
56
57
+ 731
- 253
+ 478
+ 990
- 478
+ 512
+ 700
- 558
+ 142
+860
- 1,611
-751
+ 3,002
- 1,705
+ 1,297
+ 3,071
- 1,687
+ 1,384
58
59
60
+ 149
- 401
-252
+65
- 648
-383
+ 269
- 363
-94
+ 2,257
- 1,441
+816
+814
-581
+233
+439
-639
-200
61
62
63
+ 119
...
+133
+119
64
+ 167
+65
+ 1,663
+ 1,303
65
-
+ 226
S
-
+ 129
3) includes Austria, Belgium and jjixembourg, Denmark, Federal Republic of Germany, France, Greece, Greenland, Italy, Netherlands, Norway, Portugal, Spaln, Sweden, Switzerland and Turkey.Finland included as of January 1970.
(4) Gold production available for export has not been allocated on a bilateral basis but is included in the total for all
countries.
- 30 -
TABLE 4. CANADA' S OFFICIAL INThRMAflONL MONETARY ASSETS AND LIABILIT:
1969
1970
Item
•IItIIIIVI
No
711
millions of United States dollars at end of period
Assets
Official holdings of foreign exchange
I
2
U.S.dollars .......................... 1,918
Other convertible currencies
9
1,758
15
1,668
14
1,744
12
2,057
14
2,770
17
3
Monetary gold ........................... 863
866
872
872
879
880
4
Special Drawing Rights ..................
...
...
...
...
133
143
5
Reserve position in IMF
221
322
402
478
515
523
Total official international reserves(l) ......................... 3,011
2,961
2,956
3.106
3,59h
6
Liabilities
7
Use of 11fF credit(2) ....................
8
Foreign exchange deposit liabilities ...
9
Reported use of central bank reciprocal
credit facilities .....................
10
11
Total official monetary liabilities
Net official monetary assets
-
-
1
1
-
-
-
-
1
-
-
1
-
1
-
1
1
1
1
1
3,010
2,960
2,955
3,105
3,597
4,332
Change in millions of Canadian dollars
Change in Assets and Liabilities
12 Total official international reserves(3) - 35- 54- 5+ 162+ 52:
13 Total official monetary liabtlities(3) ----(1) As published by the Minister of Finance.
(2) Transactions with the IMF when that institution holds Canadian dollars in excess of 100 per cent of the Canadian quota.
- 31 -
ABLE 4. CANADAS OFFICIAL INTERNATIONAL MONETAR? ASSETS AND LIABILITIES
Canadian liabilities
Canadian assets (equals U-IF holdings of Canadian dollars)
Transactions I
Transactions
Total
Subserip- assets Subsenip- Foreign currencies Canadian dollars
non toLoans
tions and
under
Re coDrawings
ReGABloansDrawings
by other
(Quota)
payments
by Canada payments
untries(-) (-)
millions of United States dollars
1
1947-1967 ....
1968
1969
1970
35.0
-35.0
95.5
3600 24.5
740.0
1969I
ii
In
40.0
25.5
30.0(5
iv
1970I
ii
III
IV
1971I
II.....
III.....
Iv.....
24.5
360.0
775.0
740.0
835.5
1,220.0
740.0
780.0
805.5
835.5
860.0
860.0
860.0
1,220.0
1,220.0
590.0
- 35.0
300.0
426.0
- 245.7
-64.8
- 979.4
- 138.5
65.5
294.5
-293.5
- 186.0
40.0
25.5
-15.0
- 103.5
-87.0
-88.0
24.5
-63.8
270.0
-.29.7
-87.5
-.5.0
I Canada a
Inet
I balance
Total IIith
w
liabilPT(2)
i ties
Other
61.5(3)
2.8(4)
8.4
44.2
341.6
533.8
357.4
550.4
433.4
206.2
478.1
669.6
2.5(3)
0.8
6.1(3)
42.4 -0.2(4)
518.8
457.8
403.2
357.4
221.2
322.2
402.3
478.1
345.0
337.5
286.4
550.4
51.
52:'.
5
6f".
633.7
586.3
615.2
7.3
43.2
40.3
18.1
22.2
8.8(3)
36.4(6)
-1.0(4
83.3
(I) Excludes Special Drawing Rights account.
(2) This is a cusxlative measure of the net resources provided by Canada to the IMF including loans under the General Arrangements to Borrow (GAB). Canada's net balance with the flu, when positive, represents its reserve position in the TI-IF.
This may be drawn by Canada virtually automatically on statement of balance of payments need, but Canada would then be under an obligation to restore its net balance to 25 per cent of its quota which is currently $1,100 million, i.e. to $275
million. The Canadian dollar equivalent of changes in positive balances appears as a component of item 114 in Table 1.
Changes in negative balances, i.e. use of IMP credit, are shown as a component of item 115.
(3) Sales of Canadian dollars to IMF for gold.
(4) Dividend payment to Canada.
(5) Acquisition of GAB notes issued previously to another IMP member.
(6) Sales of Canadian dollars to IMP for SDR'S.
Note: The statement is expressed in terms of United States dollar equivalents in accordance with IMP practice. Since members
are obligated to maintain the gold value of the IMFs holdings of their currencies, from time to time there have been
adjustment paymenta between the DIP and Canada in Canadian dollars arising from changes in the exchange rate. These
transactions are not reflected above because the series are shown in United States dollar equivalents, and do not appear
in the balance of payments statements because only the change in Canada's net asset is shown. The adjustment transactions affect the Public Accounts of Canada.
- 33 -
TABLE 6. BALMCE OF PAYMENTS ADJUSTMENTS TO TRADE OF CANADA FIGURES
1969
1970
1971
It em
I
II
IV
III
I
II
III
I
1969
IV
I
II
III
1970
1971
IV
million of dollars
Trade of Canada EXPORTS
(including re-exports)
3,480
3,831
3,568
4,052
3,953
4,515
Adjustments:
Wheat..................
Aircraft and other
adjustments ..........
-13
- 27
-23
-8 -11
-15
Equals merchandise exports
adjusted to balance of
p ayments basis .........
3,467
3,809
3,545
4,053
3,936
Trade of Canada IMPORTS
3,241
3,789
3,337
3,763
Adjustments:
Automotive products
Aircraft and other ......
equipment............
Other adjustments ......
-
+5
-
4,060
+9-6+25
7
-
4,359
4,092
14,931 16,887
-13-18
+14-
-12
-14 +25
-71 .52
4,525
4,048
4,332
4,099
14,874 16,841
3,333
3,890
3,346
3,371
3,431
14,130 13,940
-22
- 4
-34 -35
-25
-83-95
1-6+12+12
55767
-22 -23
-19
-36-21-
+13
- 5
-29+
1+4-6 -56-
-11+
6
17
Equals merchandise imports
adjusted to balance of
payments basis .........
3,230
3,718
3,312
3,754
3,305
3,875
3,317
3,342
3,399
14,014 13,839
balance on balance
•i , .iyments basis ......
-4-237
+ 91
-4-233
+ 299
+ 631
+ 650
+ 731
+ 990
+ 700
+ 860 +3,002
S
S
r,\}lii 7. Ri (N(:ILTArrON CATRMENr wtPii 'VF]\L [co-:i:
ANi::I - E NITL1UACCOINT-i
1970
I
II
1971
III
IV
I
II
III
1969
1970
IV
millions of dollars
Exports of goods and services:
Current receipts as per Canadian Balance of
InternationalPayments............................ 4,847
Deduct:
Current transfers:
Personalremittances, etc.
.. - 24
Capital transfers:
Inheritances and migrants' funds................ - 72
Total exports of goods and services as per
National Income and Expenditure Accounts
4,751
.....................
5,607
5,418
5061
19,095
21,580
-24 -25
- 26
- 29
-91
-99
- 101
- 122
- 93
- 89
- 363
- 388
5,583
5,460
5,299
4,943
18,641
21,093
5,456
5,129
4,906
4,919
19,846
20,283
-48 -43
-42 -79
- 47
- 55
-38
- 172
- 144
- 184
49
-49 -62
- 58
- 41
- 194
- 211
+35
+ 10
+ 45
+ 41
+ 41
+ 19
+ 139
+93
+ 154
+ 113
4,990
4,838
4,845
19,568
19,954
5,708
Imports of goods and services:
Current payments as per Canadian Balance of
International Payments............................ 4,792
Deduct:
Current transfers:
Personalremittances,etc.
.- 46
Official contributions ......................... .-31
Capitaltransfers:
- Inheritances and migrants ' funds ................ - 42
.....................
-
thhnlding taxes on dividends and interest
:.'lding taxes on other payments(l)
I ii imports of goods and services as per
ational Income and Expenditure Accounts
+ 40 +34
+ 26 + 36
............
4,739
5,387
(I) I. lles timing adjustments.
Note: Vata include some revisions not yet reflected in the National Income and Expenditure Accounts.
-201
1971
34 -
TABLE 8. CANADIAN BALANCE OF INTERN;
Suninary of Current Acc,
L:u Ire ni aci: 0.1 1
Total
N-NonExportsImportsTrade
currentII
Period
merchdise merchandise merchandise account ith:(2 With:
(adjusted) (adjusted) balance receipts(1) payments(l) With:
balance
balance United United All other
States Kingdom I countries
1- ,
mi
1960
1961
1962
1963
1964
1965
1966
1967
1968
1969
..........
..........
..........
..........
..........
..........
..........
..........
..........
..........
1970
1971
..........
+ 169
- 43
+ 195 + 218
+ 225+ 37
+ 417+ 210
+ 605
+ 606
5,392
5,889
6,387
7,082
8,238
5,540
5,716
6,203
6,579
7,537
- 148
+173
+184
+ 503
+701
1,744
1,899
2,036
2,207
2,509
2,829
3,000
3,050
3,231
3,636
-
1,085
1,101
1,014
1,024
1,125
1,233 F- 1,359
928 - 1,341
830 - 1,092
521 - 1,148
424 - 1,635
8,745
10,326
11.338
13,537
14,874
8,627
10,102
10,772
12,162
14,014
+118
+ 224
+ 566
+ 1,375
+ 860
2, 736
3,070
3,747
3,647
4,221
3,984
4,456
4,812
5,129
5,832
- 1,248
- 1,386
- 1,065
- 1,482
- 1,611
-1,1301,937
- 1,1622,030
- 499 - 1,342
- 107 - 801
- 751- 733
16,841
13,839
+ 3,002
4,739
6,444
1,705
+1,297 +33
+ 505+ 302
+ 425 4- 443
+ 512+ 331
+ 466
+ 228
+ 323- 341
+ 764
+ 500
1,826
2,191
2,263
2,465
1,866
2,218
2,101
2,442
- 40
- 27
+ 162
+ 23
505
648
930
653
886
985
1,058
1,055
-
381
337
128
402
- 421595
364532
+34175
- 379635
+ 96
+ 141
+ 138
+ 130
+
+
+
+
2,223
2,602
2,695
2,806
2,213
2,651
2,472
2,766
+10
-49
+ 223
+40
563
734
1,033
740
960
1,065
1,223
1,208
-
397
331
190
468
- 387590
- 380605
+33191
- 428644
+ 106
+ 110
+ 101
+ 108
+ 115
+ 123
+ 108
2,596
3,003
2,691
3,048
2,481
2,975
2,591
2,725
+115
+28
+ 100
+ 323
648
947
1,350
802
1,076
1,244
1,250
1,242
- 428
- 297
+ 100
- 440
- 313 - 563
- 269 - 508
+ 200+ 48
- 117 - 319
+ 127
+ 116
+ 102
+ 167
+ 123
+ 123
+ 50
+ 35
3,017
3,532
3,321
3,667
2,754
3,140
2,859
3,409
+
+
+
+
263
392
462
258
658
901
1,254
834
1,148
1,278
1,403
1,300
-
490
377
149
466
- 227 - 415
+ 15_ 249
+ 313 + 151
- 208_ 288
+ 124
+ 130
+ 115
+ 97
+64
+ 134
-i. 47
- 17
3,467
3,809
3,545
4,053
3,230
3,718
3,312
3,754
+ 237
+ 91
+ 233
+ 299
783
1,061
1,368
1,009
1,284
1,477
1,591
1,480
-
501
416
223
471
- 264_387
- 325 - 314
+ 10+ 101
- 172 - 133
+ 124
+ 56
+ 35
+ 108
- 67
- 126
- 147
3,936
4,525
4,048
4,332
3,305
3,875
3,317
3,342
+
+
+
+
631
650
731
990
911
1,183
1,559
1,086
1,487
1,581
1,812
1,564
-576
- 398
- 253
- 478
+55_ 269
+252-100
+ 478 + 232
+512 + 170
+ 178
+ 209
+ 140
+ 237
+ 146
+ 143
+ 106
4- 105
4,099
3,399
+ 700
962
1,520
558
+142 I- 123
+ 148
+ 117
..........
1965I
CI
III
IV
1966I
II
III
IV
1967I
Ix
III
IV
19681
II
III
IV
1969I
II
III
......
......
......
......
......
......
......
......
......
......
......
......
......
......
......
......
......
......
......
IV
......
1970I
......
II
......
III
Iv
1971T
......
......
......
(1) Include,, tr nsfers.
+
- 35 -
\I,ANCE OF INTERNATIONAL PAYMENTS - Concluded
-
Period
Direct
invest me nt
in
Canada
mary of Capital Account
Resident
Otherholdings Non-0th. r
of foreign
capiLal
Directcapital
Allocation Net
resident
1
Portfolio bankmove-NI
Special official
invest-move-holdings sents
in
Capital
trans- balances
mentDents in of Canadian
Urawingmonetary
n\,-me nt actionsand
other
shortabroadlong-termshort-term
Rightsmovements
short-term term
formspaper
fundsforms( 1)
abroad
millions of dollars
1960
1961
1962
1963
1964
...........
...........
...........
...........
...........
+
+
+
+
+
670
560
505
280
270
- 50
- 80
-. 105
- 135
- 95
+217
+312
+ 294
+ 471
+ 645
+ 92
+ 138
—6
+ 21
-60
+ 142
+ 92
- 259
- 527
+ 56
- 58
+ 4
* 43
+ 169
+
+
+
+
+
269
206
200
245
326
+
+
+
+
+
1,194
1,220
984
666
788
+
+
+
+
39
292
154
145
364
1965
1966
1967
1968
1969
...........
...........
...........
...........
...........
+
+
+
+
+
535
790
691
590
655
- 125
—5
- 125
- 225
- 255
+
+
+
+
+
+
+
+
+
92
57
316
226
25
+ 140
- 603
- 259
- 401
- 1,604
+
+
+
-
425
251
530
712
87
+ 1,289
+ 803
* 519
+ 456
+ 816
+
+
+
+
159
359
20
349
65
+ 760
- 215
+ 661
- 392
-376
+ 236
+
+
+
+
142
133
Ill
149
+
-
57
33
55
46
+ 106
+ 69
+ 218
4
153
+ 22
- 53
- 58
—3
-173
4-140
-76
-97
8
4
60
68
+
+
+
27
47
110
295
+351
+ 365
+190
+ 383
- 70
+ 1
+ 224
+ 4
19661 .......
Li.......
Iii .......
lv .......
+
+
+
+
134
203
151
302
+
-
22
29
80
34
+ 356
-3
+27
-55
+ 1
+ 56
—6
+ 6
-
166
22
318
97
+
+
7
14
41
36
+
+
56
66
12
253
+
+
+
254
257
119
411
-
133
123
86
17
19671 .......
ii .......
111 .......
iv .......
+
+
+
+
154
186
166
185
- 37
- 16
—34
- 38
+
+
+
+
116
29
102
226
+
+
+
+
45
51
85
135
+
+
-
344
42
310
335
+
+
17
12
77
25
-
341
63
76
50
+
+
+
298
217
144
148
+
+
15
52
56
31
19681 .......
11.......
Lii.......
lv .......
+
+
+
+
53
225
137
175
- 88
—6
- 20
- 111
+
+
+
+
142
470
268
183
+
+
+
58
60
12
120
-99
+10
-170
- 142
+
30
51
25
21
+
573
103
329
293
+
+
537
605
151
539
+
+
+
764
620
162
331
19691 .......
IL.......
ilL .......
lv .......
+
+
+
+
156
233
79
187
-
*
+
+
+
536
422
558
316
+
80
20
16
141
-
156
568
621
259
+
+
+
169
63
78
96
+
+
-
347
244
88
72
+ 226
+271
-15
+ 334
1970I .......
11 .......
III .......
Iv.......
+200
+ 155
+ 115
+ 290
- 150
- 20
4- 15
- 60
+ 561
-61
+173
-12
+
-
33
118
154
153
+ 206
- 5
- 470
- 107
+
+
+
78
132
29
153
*
+
-
433
446
40
494
+
+
-
1971I.......
± 285
- 145
+ 184
- 55
+ 568
- 136
1970 ...........
971...........
52
103
25
75
ricludi's errt rs and ni SSLOflS.
546
325
473
1,063
1,832
140
12
47
85
250
4-
- 795
233
4
+ 1,663
- 38
- 54
- 5
+ 162
339
529
252
383
+ 133
-94
+ 119
+
+
+
+
527
781
226
129
+ 167
RI AIlS [ICR I:ANACIA LIBRARY
BIBLIuTHE QUE STA [IS UQuL CANADA
11 1 1 11111 1 , l
1010508170
REFERENCE PUBLICATIONS
Catalogue
number
Title
67-505"The Canadian Balance of International Payments - A Compendium of Statistics from 1946 to 1965", for 1946 to 1964.
67-201"The Canadian Balance of International Payments 1963, 1964 and 1965 and
International Investment Position", for more detailed information.
67-001"Quarterly Estimates of the Canadian Balance of International Payments,
Fourth Quarter 1967" revised 1965.
67-001"Quarterly Estimates of the Canadian Balance of International Payments,
Second Quarter 1969" revised 1966.
67-001"Quarterly Estimates of the Canadian Balance of International Payments,
Second Quarter 1970" for revised bilateral data for 1967 and 1968.
67-001"Quarterly Estimates of the Canadian Balance of International Payments,
Fourth Quarter 1970" revised global data for 1969.
Additional subsidiary detail published regularly may be traced through
the successive quarterly reports.
In addition to the selected publications listed above, the
Dominion Bureau of Statistics publishes a wide range of statistical
reports on Canadian economic and social affairs. A comprehensive
catalogue of all current publications is available free on request
from the Dominion Bureau of Statistics, Ottawa 3.
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