Imports declined faster than exports during October, Statistics Canada reported Wednesday, sending Canada's trade surplus higher.

The country's overall trade surplus rose to $3.3 billion in October, up from an upwardly-revised $2.8 billion in September.

That growth came as a surprise to economists, who had been looking for the surplus to narrow to $2.3 billion.

The Canadian dollar's strength against the U.S. dollar was reflected in the trade figures. In October, Canada's trade surplus with the United States narrowed to $6.2 billion — its lowest level since October 2006 — as exports fell more sharply than imports.

Lower prices contributed to overall reductions in the value of Canadian imports and exports, the federal government agency said. Imports fell two per cent to $34.0 billion, while exports edged down 0.5 per cent to $37.4 billion, the third consecutive monthly decrease.

"While Canada’s dollar is unlikely to retest the [$1.10 US] Nov. 7 high, we expect the currency will linger around parity against the U.S. dollar, supporting import growth, while sharply slower U.S. economic activity will dampen export demand," said RBC senior economist Dawn Desjardins in a statement.

The loonie closed Wednesday at 98.70 cents US, up 0.12 cents from Tuesday. 

The trade deficit with countries other than the United States eased to $2.9 billion. Exports rose and imports fell with all of Canada's principal trading areas, except for Japan. Exports to countries other than the United States rose 5.6 per cent in October, continuing a strong trend seen throughout 2007.