By Julie Gordon

OTTAWA, (Reuters) – Canada’s trade surplus to the rest of the world fell to C$2.49 Billion in March, up from February. This was below analyst expectations as imports and exports soared to new heights. Statistics Canada released data on Wednesday.

Due to high energy prices, exports rose 6.3% to C$63.63 trillion. The increase in imports was 7.7%, to C$61.14billion. There were gains across nine product categories. Analysts had predicted that both imports and exports would be higher.

Statscan reported that 28.2% total exports were made up of energy products, and exports rose 14.8% due to rising prices. Exports rose 4.0%, excluding energy products.

Statscan reported that March saw a significant increase in crude oil prices due to the war in Ukraine and the sanctions against Russia.

As supply chain bottlenecks which have been a hindrance to vehicle production eased, exports of parts and motor vehicles also increased. Both imports and exports of motor vehicle parts rose as well. Two-way trade between the auto sector was at its highest since August 2019 (not seasonally adjusted).

Canada had a trade surplus of C$12.6 million with the United States, but a trade deficit of C$10.1 billion with other countries.

Canadian dollars traded 0.2% lower at 1.2811 against the greenback or 78.06 U.S.cents.

($1 = 1.2811 Canadian dollars)