The country's trade deficit grew to a record in March as exports plunged by a lot more than imports did.
The $3.4-billion figure released Wednesday morning by Statistics Canada was almost twice as much as the $1.4-billion deficit economists had been expecting.
The data agency also revised February's deficit higher, to $2.5 billion from the initial reading of a shortfall of $1.9 billion. Exports in March fell 4.8% to $41 billion in March.
Experts call that a worrying sign as the cheap dollar over the winter months should have helped boost exports. Instead, they somehow lost ground.
Imports fell 2.4% to $44.4 billion as eight of 11 sectors fell.
A drop in imports of consumer goods and aircraft and other transportation equipment and parts was partially offset by higher imports of energy products.
Much of the deficit came from a trade imbalance with Canada's largest trading partner, the U.S., but also with the rest of the world.
Typically, Canada exports a lot more to the U.S. than it imports. But Canada's trade surplus with the United States narrowed to $1.5 billion in March, the lowest surplus since December 1993.
Exports to the U.S. fell 6.3% to $30.4 billion in March, while imports slipped 4.8% to $28.9 billion.
Canada's trade deficit with countries other than the United States increased to $4.9 billion in March compared with $4.6 billion in February.
