Statistics Canada announced on Wednesday that Canada’s merchandise trade deficit stood at CAD3.19 billion in June, widening sharply from a revised CAD1.33-billion gap in May (originally a CAD0.68-billion gap).

Economists had expected a deficit of CAD0.90 billion.

According to the report, Canada’s exports surged 17.1 percent m-o-m to CAD39.71 billion in June, with motor vehicles and parts contributing the most to the overall increase (+218.2 percent m-o-m).

Meanwhile, imports climbed 21.8 percent m-o-m to CAD42.90 billion in June, also driven by higher imports of motor vehicles and parts (+215.8 percent m-o-m).