The country's trade deficit grew to a record $3.4 billion in March as exports plunged by a lot more than imports did, Statistics Canada said.

The figure was more than double the $1.4-billion deficit that 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 per cent to $41 billion in March.

"Export volumes are now back down to where they were in November," Scotiabank's economics team said in a note early Wednesday.

That's a worrying sign because the cheap dollar during that period should have helped boost them. Instead, they have somehow lost ground.

Bank of Montreal economist Benjamin Reitzes also saw little reason for optimism in the numbers.

"The details were absolutely terrible, consistent with the headline, as exports dove 4.8 per cent, with every category lower except aerospace," Reitzes said.

Imports fell 2.4 per cent 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 per cent to $30.4 billion in March, while imports slipped 4.8 per cent 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.