MNI BRIEF:Canada Feb Trade Surplus Down From Highest Since `08

Canada's merchandise trade surplus narrowed in February from a revised January figure that was the widest since 2008, the federal statistics office reported Tuesday.

The February surplus of CAD2.7 billion followed a January figure that Statistics Canada boosted to CAD3.1 billion from CAD2.6 billion. 

Exports rose 2.8% to a record CAD58.7 billion with gains in eight of 11 major categories including a 7.8% rise in energy to a record CAD15.4 billion as tensions around Ukraine boosted prices. Imports rose faster with a 3.9% gain, also a broad-based increase.

Q1 GDP growth may come in twice as strong as the BOC's projection of a 2% annualized pace as the economy re-opens and the Ukraine invasion boosts commodity exports. Rapid inflation will lead the Bank to hike its 0.5% rate to 1% next week, economists say.