BUSINESS

Net foreign debt rose in Q3 as loonie strengthened: StatsCan

12/12/2012 09:02 EST | Updated 02/11/2013 05:12 EST
OTTAWA - Statistics Canada says the country's net foreign debt increased by $53.7 billion to $296.6 billion at the end of the third quarter.

The agency says the increase mainly reflected the effect of the appreciation of the Canadian dollar on foreign currency denominated assets as well as increased borrowing from abroad in the quarter.

It says Canada's international assets rose $72.8 billion to just over $2.29 trillion in the third quarter due to higher foreign stock markets and increased Canadian acquisitions of foreign assets.

However, the rise of the loonie against most major currencies reduced the value of foreign currency denominated international assets by $56.9 billion in the quarter.

Non-residents invested $74 billion in the Canadian economy in third quarter, as Canada's international liabilities increased by $126.5 billion to almost $2.6 trillion.

Canadian stock market gains also added $63 billion to the value of non-resident holdings of Canadian equities.