Canada’s trade deficit widened more than expected to start the year, with collapsing shipments highlighting the country’s struggling export sector.

Exports of merchandise goods fell two per cent in January, the largest decline since June of last year, Statistics Canada reported Friday from Ottawa. The declines were widespread, with 9 of 11 product categories falling on the month, led by a 4.1 per cent drop in motor vehicle shipments. Energy was also weak, underlined by a 26.2 per cent decline in natural gas shipments. Imports fell 0.5 per cent, the agency said.

The falling exports pushed Canada’s trade deficit with the world to $1.47 billion, notably wider than the $780 million gap economists surveyed by Bloomberg were expecting. Some of the export declines can be attributed to extended production slowdowns at auto assembly plants and unseasonably warmer U.S. weather crimping natural gas exports, Statistics Canada.

Still, the broadly weak trade print will add to concerns about the fragile state of Canada’s economy ahead of the spreading risk of the coronavirus. Goods exports represent around a quarter of the nation’s economy, and their lack of growth over the last year may trouble policymakers.

Stripping away price effects, exports fell 3.1 per cent, the biggest pullback in nearly a year. Import volumes declined 0.5 per cent.

--With assistance from Shelly Hagan.