Canada's international merchandise trade deficit narrowed to C$1.31 billion (US$957 million) in December as exports outpaced imports, though the share of exports to the US fell to a record low outside the pandemic months, reports Reuters.

Statistics Canada said total exports rose 2.6 per cent to C$65.63 billion, driven by an 18 per cent surge in metals and non-metallic mineral products. Exports of unwrought gold jumped more than 37 per cent on higher prices. Excluding metals, exports edged down 0.2 per cent.

Imports increased 0.6 per cent to C$66.93 billion, led by gold, passenger vehicles and energy products. Economists had expected a deficit of about C$2 billion.

Exports to the US rose 1.1 per cent but accounted for only 67.4 per cent of Canada's total, down from 76.2 per cent a year earlier and the lowest share since records began, apart from two pandemic months. Imports from the US rose 3.5 per cent, narrowing Canada's surplus with its southern neighbour to C$5.7 billion.

Exports to other countries reached an all-time high in December, led by gold shipments to the UK. Imports from non-US markets fell three per cent, narrowing Canada's deficit with those countries to C$7 billion from C$9 billion in November.