With economists and financial pundits debating whether Canada is in the midst of a recession, one key indicator offers hope that the worst is now over. After five consecutive months of declines, Canada’s exports surged by 6.3% in June, to CAD44.6 billion.

That stunning performance helped narrow Canada’s trade gap to just CAD480 million, down sharply from the near-record trade deficit of CAD3.37 billion in May.

Economists had expected the trade deficit to come in at CAD2.9 billion, so the actual number was obviously a big surprise. And it was also the lowest trade deficit since last November.

According to Statistics Canada, exports were strong in nine out of 11 categories, with both rising volumes and higher prices driving this performance.

Consumer goods posted the biggest gain, up 20.1% year over year, to nearly CAD6 billion, thanks in part to jumps in exports of pharmaceuticals and seafood. This category alone was responsible for wiping nearly CAD1 billion off the trade deficit.

Demand from Asian countries, particularly China, caused seafood exports to skyrocket nearly 130% month over month, with seafood accounting for almost 30% of the growth in exports for the consumer goods category.

Constrained seafood supply in some parts of the world has pushed prices higher, so the declining Canadian dollar has stoked demand for the country’s products by making them more affordable than those from other places. For instance, exports of lobster to the region have almost doubled since 2013.

There was also encouraging news on the resource front.

Exports of metals and minerals notched a solid gain, climbing 5.2% year over year, to CAD5.1 billion, with precious metals leading the way.

Forestry products also performed well, with exports rising 11.8%, to CAD3.1 billion. If the U.S. housing market continues to improve, this sector will be a key beneficiary.

And the all-important energy sector enjoyed a 3.7% increase in exports, to CAD7.9 billion. That was largely due to the rise in crude oil prices, which hit a year-to-date peak in June. By contrast, volumes declined by 0.7%.

Unfortunately, after seeming on the verge of stabilizing, crude plummeted once again in July. So it’s safe to say that the sector was likely a drag on overall exports in July.

Meanwhile, manufacturing saw exports rise by nearly 7%, and CIBC economists say there’s room for the sector to run higher after recent weakness.

Before crude oil collapsed, the Bank of Canada believed a resurgence in manufacturing exports could help spur growth in the broader economy. But the beleaguered sector’s progress has been halting, at best.

The central bank is hoping that a rise in exports will help boost business investment. That’s all the more critical now that the oil and gas sector, which had accounted for nearly one-third of the country’s capital expenditures, has made dramatic cuts to spending.

We’ve been monitoring imports of industrial machinery and equipment for a sign that business spending is strengthening. But imports in this category have grown by just 0.9% over the past year, hardly enough to suggest that business investment is on the rebound.

Part of the problem is that a lower exchange rate has made these imports more expensive for businesses that were already hurting from a troubled economy.

Overall, the lower exchange rate should help the economy find new growth in areas beyond energy and housing. But economists believe the Canadian dollar will need to remain at current levels for a considerable while longer for that effect to be fully felt throughout the economy.

And the lift from June exports may not be enough to keep Canada’s economy from contracting for two consecutive quarters.

With a federal election underway, there’s some debate over whether two quarters of negative growth qualify as a recession–the dreaded “R” word. Some refer to this as sufficient for meeting the threshold of a “technical” recession, though economists would say that this needs to be accompanied by significant weakness in the job market and other key areas.

Regardless of what you call it, the good news is that Canada’s economy is forecast to experience a meaningful recovery during the second half of the year. Economists surveyed by Bloomberg forecast growth in GDP of 2.2% during the third quarter, accelerating to 2.6% in the fourth quarter.