Canada hits record $3.4 bn trade deficit

(MENAFN- AFP) Canada's trade deficit expanded sharply in March to a record gap, largely due to a tumble in exports to the United States, official figures showed on Wednesday.

Statistics Canada said the trade shortfall was CAN$3.4 billion, up from CAN$2.5 billion in February.

March exports fell 4.8 percent to CAN$41.0 billion as exports to the US, a main trading partner, dropped 6.3 percent.

Imports, meanwhile, also declined, but less dramatically, falling 2.4 percent to CAN$44.4 billion.

Imports were markedly lower from China, but increased from South Korea and Algeria, according to Statistics Canada, which said imports from countries other than the United States increased 2.2 percent to CAN $15.5 billion.

The agency noted in its report that Canada's trade surplus with the United States narrowed from CAN$2.1 billion in February to CAN$1.5 billion in March -- the lowest surplus since December 1993.