Still, the focus on the current account can easily lead to the wrong conclusions. Even persistent and sizable current account positions are not a problem in themselves. Technically, a surplus or deficit reflects the difference between domestic saving and investment.
China's abrupt lifting of COVID-19 restrictions is a new uncertainty which poses upside risks to global commodity prices. In Canada, the economy remains overheated and clearly in excess demand. Tight labour markets have shown only modest signs of easing. Job vacancies have come down a little but remain elevated, the unemployment rate is near historic lows, and many businesses continue to report labour shortages.