Canada's trade deficit in goods jumped to a record high in March on a surge in imports, but analysts took heart in data showing healthy export growth, a sign the economy is performing well. Statistics Canada said on Thursday that the deficit hit C$4.14 billion ($3.21 billion) in March, much higher than the C$2.24 billion shortfall predicted by analysts in a Reuters poll. The previous record was C$4.13 billion in September 2016.
After two weak months, exports posted a 3.7 percent gain to C$47.58 billion on exports of aircraft and other transportation equipment, in part due to a contract to supply armored vehicles to Saudi Arabia. "This is a tremendous rebound which us very comforting. We are very happy to see that," said Peter Hall, chief economist at Export Development Canada. Wheat shipments jumped by 51.9 percent after a sharp fall in February amid rail transportation disruptions.
Imports grew by 6.0 percent to a record C$51.72 billion on increased shipments of motor vehicles and parts - in particular, passenger cars and light trucks - as well as consumer goods. In volume terms, imports rose 5.3 percent. Exports to the United States rose 1.2 percent while imports increased by 3.1 percent. As a result, the trade surplus with the United States shrank to C$1.68 billion from C$2.28 billion in February.
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