OTTAWA — Canada’s gross external debt increased 167.3 billion Canadian dollars to 3,251.3 billion Canadian dollars at the end of the third quarter of 2021, Statistics Canada said Thursday.

This represented 129.8 percent of the gross domestic product, up compared with 125.8 percent at the end of the second quarter.

The government sector’s gross external debt grew 29.3 billion Canadian dollars to 651.2 billion Canadian dollars and the financial sector’s gross external debt increased 119 billion Canadian dollars to 1,828.1 billion Canadian dollars at the end of the third quarter.

The financial sector still accounted for the highest proportion of Canada’s gross external debt at 56.2 percent, followed by the government sector with 20 percent.

Overall, nearly two-thirds of Canada’s gross external debt is denominated in foreign currencies, mostly long-term instruments, with original maturity greater than one year, such as bonds.

Canada’s net foreign asset position reached 1,367.8 billion Canadian dollars at the end of the third quarter of 2021, up 55.3 billion Canadian dollars from the previous quarter.

The revaluation effect resulting from fluctuations in exchange rates led the overall increase in Canada’s net foreign asset position.

Over the quarter, the Canadian dollar depreciated against most major foreign currencies. It lost 2.7 percent against the U.S. dollar, 0.7 percent against the euro, and 1.9 percent against the Japanese yen.

At the end of the third quarter, 96.4 percent of Canada’s international assets were denominated in foreign currencies, compared with 36.4 percent of its international liabilities.

Market price variations had a limited impact on the revaluation of Canada’s international assets and liabilities in the third quarter, following a significant contribution in each of the previous five quarters.

Overall, changes in market prices resulted in a decrease of 17.7 billion Canadian dollars in Canada’s net foreign asset position in the third quarter.

At the end of the third quarter, Canada’s international assets increased 230.8 billion Canadian dollars to a record 7,256.8 billion Canadian dollars.

Meanwhile, Canada’s international liabilities amounted to 5,889.0 billion Canadian dollars, an increase of 175.5 billion Canadian dollars. The increase was mainly due to investments from abroad of 118.0 billion Canadian dollars, most in the form of debt securities.