OTTAWA -- Statistics Canada says the country's current account deficit narrowed by $3.3 billion to $12.4 billion in the first quarter on a seasonally adjusted basis.

It says the increase was led by an improved balance of trade in goods, which recorded a first surplus in more than two years.

In the financial account, unadjusted for seasonal variation, increased foreign currency deposits placed by non-residents in Canada was, for a second straight quarter, the largest contributor to the inflow of funds into the Canadian economy.

The balance on international trade in goods posted a $1.6 billion surplus in the first quarter, following a $2.2 billion deficit in the previous quarter.

This was the first overall surplus since the end of 2011.

The trade surplus with the United States widened by $3.1 billion to $13.2 billion on the strength of exports of energy products, while the deficit with all other countries declined for a second consecutive quarter.