Canada's trade deficit widened in January to $993 million, dragged down by a fall in exports of automotive products.

Statistics Canada said Friday that the trade grew from the $652 million gap seen in December 2008,

For January, overall exports declined nine per cent from December to $31.7 billion while imports fell 7.9 per cent to $32.7 billion.

The drop in automotive products accounted for almost half of the decline in exports.

Statistics Canada reported that exports of automotive products dropped 34.5 per cent month-over-month to $3.0 billion — their lowest level since January 1992 — as passenger autos, motor vehicle parts, trucks and other motor vehicles all declined.

Exports of passenger autos plunged 44.1 per cent to $1.4 billion as January new vehicle sales in the United States hit their lowest level since 1982.

"As the global economic recession deepens over the coming months, we now expect exports to contract by over 35 per cent in the first quarter of 2009," said TD Bank economist Diana Petramala.

"We believe that when the economic turmoil is all said and done, exports will have contracted for an unprecedented nine consecutive quarters. The toll of a global recession will mount to a 21 per cent reduction in Canada’s trade sector."