Statistics Canada released the trade data on Wednesday. Canada's trade deficit narrowed to C$2.94 billion in April from a deficit of C$3.18 billion in March. March's figure was revised up from a deficit of C$3.41 billion.

Analysts had expected a trade deficit of C$2.45 billion.

The decline in deficit was driven by a rise in exports. Exports rose 1.5% in April.

Exports of energy products rose 7.6% in April, exports of metal and non-metallic mineral products climbed by 5.7%, while exports of industrial machinery, equipment and parts jumped 10.5%.

Imports rose 0.9% in April.

Imports of aircraft and other transportation equipment and parts jumped by 52.0% in April, imports of energy products increased by 5.9%, while imports of imports of industrial machinery, equipment and parts fell 5.1%.