OTTAWA, May 2 (Reuters) - Canada in March recorded a surprise merchandise trade deficit of C$2.28 billion ($1.66 billion), the largest in nine months, as exports declined faster than imports, data showed on Thursday.
Total exports fell 5.3% in March mainly due to exports of unwrought gold declining from a record high reached in February, while imports were down 1.2%, led by electronics and metal ores and non-metallic minerals, Statistics Canada said.
Analysts polled by Reuters had forecast a trade surplus of C$1.50 billion in the month. Statscan also downwardly revised February's trade surplus to C$476 million from the C$1.39 billion reported initially.
Data this week showed the Canadian economy likely stalled in March after expanding less than expected in February, signaling a loss in momentum that bolstered expectations that the Bank of Canada would have more reason to lower borrowing costs in June.
The decline in exports in March was at the fastest rate since February 2023, with decreases nine of 11 export product sections.
Exports of metal and non-metallic mineral products, which includes the subcategory for gold, decreased 17.4% in March. Crude oil recorded its fifth decrease in six months and contributed to the decline in exports of energy products in March.
The decrease in imports was also broad-based, with seven of the 11 product sections recording declines.
($1 = 1.3725 Canadian dollars) (Reporting by Ismail Shakil in Ottawa; Editing by Dale Smith)
