OTTAWA, March 8 Reuters Canada recorded an unexpected trade surplus of C1.9 billion 1.38 billion in January, driven by broadbased gains in exports, while imports posted a smaller increase led by motor vehicles and parts, Statistics Canada data showed on Wednesday.

Analysts had forecast a trade deficit of C60 million in January. Statscan also revised December39;s trade figures to a surplus of C1.2 billion from an initial C160 million deficit.

The data points to a stellar start to the year that should help lift economic prospects at a time when high interest rates are expected slow the domestic economy, Stuart Bergman, chief economist at Export Development Canada, said in an interview.

The Bank of Canada, which kept rates on hold on Wednesday, has raised rates by a total of 425 basis points over the past year to tame inflation.

Total exports rose 4.2 in January on the back of gains in all product categories that more than offset a fall in energy products exports. Excluding energy, exports rose 6.1 to an alltime high of C51.6 billion.

Farm, fishing and intermediate food products, motor vehicles and parts, and metal and nonmetallic mineral products all contributed roughly equally to the rise in exports, Statscan said. By volume, total exports were up 5.3 in January.

We saw real gains, Bergman said, noting the jump in trading volume that made up for a slight drop in prices. This is pure physical shipments … this is the stuff that we want to see.

Imports increased…