grew more than expected in January and was seen expanding further in February, data showed last week, a factor complicating the central bank's plans to
refrain from further interest rate hikes as long as the economy slows and inflation eases in line with forecasts.
Exports fell 2.4%, dragged down by decreases in nearly all product areas. Metal and non-metallic mineral products as well as autos and auto parts were the main contributors. By volume, exports declined 0.9% in February. "Exports may have fallen again last month, but this still suggests that a large positive contribution from net trade explains part of the likely pick-up in first-quarter GDP growth," said Stephen Brown, deputy chief North America economist with Capital Economics.
Total imports were down 1.3%, with declines in most product
categories. Industrial machinery, equipment and parts as well as
motor vehicles and parts were among the main drags. By volume,
imports fell 0.8%.
A rise in imports of consumer goods, primarily
pharmaceutical products, partially offset the declines, Statscan
said.
The Canadian dollar was little changed, trading at
1.3440 or 74.40 U.S. cents to the greenback.
($1 = 1.3477 Canadian dollars)
(Reporting by Ismail Shakil and Steve Scherer in Ottawa, with
additional reporting by Dale Smith in Ottawa and Fergal Smith in
Toronto; Editing by Mark Porter)
