Canada recorded its first annual trade deficit in 34 years last year .This comes at the backdrop of global recession and primarily due to steep fall in commodity prices. The country's trade balance plunged into red with the rest of the world in 2009, ending the year with a deficit of $4.8-billion -- the first annual decline since 1975 -- following a $47-billion trade surplus in 2008.

In December, the country trade deficit rose by 1.8% pushing the country's trade deficit to $246-million mainly due to exports increased only 1.7%, while imports rose by 1.8%.

"The volume of trade actually made little net impact on growth last year, as both imports and exports tumbled in real terms," Mr. Porter said. "In fact, for Q4 alone, it still looks like net trade added moderately to real GDP growth, which we continue to peg at 4%, with some slight upside risk."

Canada exports rose for the consecutive fourth month to $32.2-billion in December from $31.7-billion the previous month. Almost two-thirds of the growth came in form automotive products and rest by machinery and equipment and energy products. Exports of industrial goods and materials declined in December.

Imports rose to $32.4-billion from $31.9-billion in November.