CANADIAN TRADE

Press, Volume CI, Issue 29767, 9 March 1962, Page 18

CANADIAN TRADE

Lowest Deficit Since 1935

(N.Z, Press Assn.—Copyright) OTTAWA, March 8

Canada reduced her balance of payments deficit to 989 million dollars last year—the lowest since 1935—as a result of a surplus on merchandise trade. Canadian Press reported.

But the Dominion Bureau of Statistics reported today that there, was a record 1188 million dollars deficit in nonmerchandise transactions with other countries—nearly half of it resulting from dividend and Interest payments on foreign investments.

The reduction in the overall deficit of nearly 20 per cent, from 1217 million dollars in 1960 was the second consecutive decline from the peak deficit of 1492 million dollars.

In both of those years Canada's merchandise trade position had been improving, but there has been a widening deficit on “invisible” nonmerchandise transactions such as interest and dividend payments. tourist and travel expenditures and shipping costs.

The over-all deficit is financed by inflows of foreign capital and Last year all of this capital—on balance—came from the United States.