OTTAWA, Dec. 10 (Xinhua) -- Canada's net foreign asset position increased 94.4 billion Canadian dollars (about 74.1 billion U.S. dollars) to 1,170.1 billion Canadian dollars at the end of the third quarter, according to Statistics Canada on Thursday.
For a second consecutive quarter, the increase was due to higher equity prices and was moderated by the revaluation effect from fluctuations in exchange rates, as well as net borrowings from abroad.
Despite the ongoing need for borrowing from abroad, Canada's net foreign asset position has added 191.3 billion Canadian dollars since the beginning of 2020.
The increase is mainly attributable to revaluations due to market price changes, which pushed Canada's net foreign asset position up 168.4 billion Canadian dollars over this period.
Since the beginning of 2020, net borrowings of 41.8 billion Canadian dollars from abroad, mostly in the form of debt securities issued by the federal government, have been recorded in the financial account to finance the current account deficit.
Canada's international assets surged 139.2 billion Canadian dollars to a record high of 6,087.2 billion Canadian dollars at the end of the third quarter. The increase was primarily due to the upward revaluation stemming from market price changes.
On the other side of the ledger, Canada's international liabilities soared 44.8 billion Canadian dollars to 4,917.0 billion Canadian dollars due to higher market prices and increased foreign borrowings.
The country's gross external debt rose 2.6 billion Canadian dollars to 3,026.5 billion Canadian dollars at the end of the third quarter. It represented 135.4 percent of Canada's gross domestic product, down from 151.3 percent in the second quarter.
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