Canada reported a more-than-expected merchandise trade deficit in December, backed by automobiles, wrapping up the country's first annual shortfall since 1975.

The trade gap widened to C$246 million ($230 million) from a revised November deficit of C$201 million, compared with the C$344 million deficit reported earlier, Statistics Canada said on Wednesday.

However, Economists surveyed by Bloomberg speculated a C$100 million deficit based on the median of 20 estimates.

The Bank of Canada reveals that weak U. S. demand and a strong Canadian dollar reflected a clear push on the economy. Governor Mark Carney has pledged to keep his benchmark lending rate at a record 0.25 percent through June to stimulate demand unless the inflation outlook shifts.

Exports witnessed a 1.7 percent rise to C$32.2 billion in December, with nearly 66% of the gain coming from an 8.1 percent jump in automobiles.

Canada's trade surplus with the U. S., its largest trading partner, widened to C$3.70 billion in December from C$3.42 billion, Statistics Canada revealed.

The Canadian dollar registered a 17 percent rise against its U. S. counterpart over the past 12 months, making the country's goods less competitive.