Statistics Canada announced on Tuesday that Canada recorded a trade deficit of CAD1.14 billion in March, compared with a revised CAD1.42-billion surplus in February (originally a CAD1.04-billion surplus). This was the first trade shortfall following two consecutive monthly trade surpluses.

Economists had forecast a surplus of CAD0.70 billion.

According to the report, Canada’s exports rose 0.3 percent m-o-m to CAD50.62 billion in March, as higher exports of motor vehicles and parts (+10.2 percent m-o-m) and metal ores and non-metallic minerals (+33.0 percent m-o-m) were partly offset by declines in exports of energy products (-6.7 percent m-o-m) and aircraft and other transportation equipment and parts (-23.8 percent m-o-m). Meanwhile, imports surged 5.5 percent m-o-m to CAD51.76 billion in March (the highest level since May 2019), as all 11 product sections posted monthly gains, led by imports of energy products (+54.7 percent m-o-m).