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Statistics Canada (StatsCan) reports that Canada’s merchandise trade deficit narrowed to $1.9 billion in January compared with a deficit of $3.1 billion in December.

Economists had expected a deficit of $2.5 billion for January, according to Thomson Reuters Corp.

StatsCan reports that imports totalled $47.7 billion, down by 4.3% from a record level in December.

Imports of industrial machinery, equipment and parts fell by 11.3% to $4.5 billion in January while imports of consumer goods dropped by 4.6% to $10 billion.

On the other side of the ledger, exports fell by 2.1% in January to $45.8 billion as seven of 11 sectors slipped lower.

Exports of motor vehicles and parts dropped by 5.7% to $7.2 billion in January, while exports of forestry products and building and packaging materials fell by 6.6% to $3.4 billion.