OTTAWA — The Canadian economy grew by 0.1 per cent in February, Statistics Canada said Friday.
In its latest report on economic growth, the federal agency's preliminary estimate suggested real gross domestic product grew at an annualized rate of 2.5 per cent in the first quarter.
The February figure came in lower than was expected by Statistics Canada as wholesale and retail trade as well as manufacturing all contracted.
Boosting real GDP in February was growth in the public sector, professional, scientific and technical services, construction and finance and insurance.
Statistics Canada revised up its January figure for real GDP to 0.6 per cent.
The Canadian economy is expected to stall this year and potentially enter a recession as high interest rates weigh on consumers and businesses.
The Bank of Canada is holding its key interest rate steady at 4.5 per cent, the highest it's been since 2007.
The federal agency's preliminary estimate for March suggests the economy contracted by 0.1 per cent.
"After sprinting out of the gate to start 2023, the Canadian economy had already hit a wall by March," CIBC economist Andrew Granthan wrote in a client note.
The expected dip in real GDP is driven by continued declines in wholesale and retail trade, in addition to mining and quarrying.
But Grantham said the new data shouldn't change much for the Bank of Canada's outlook.
"Until there are clearer signs that slowing growth is also helping to ease core inflation, the Bank of Canada will continue to lean towards raising interest rates, even if a hike is not ultimately needed, with rate cuts not coming until 2024," Grantham said.
This report by The Canadian Press was first published April 28, 2023.
Nojoud Al Mallees, The Canadian Press
Source - https://ca.finance.yahoo.com/news/statcan-release-february-gdp-numbers-080000208.html
2. Paul Young - Bio
• CPA, CGA (1996)
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3. Agenda
• G20 GDP Growth
• G7 GDP Growth
• GDP Analysis – Canada
• GDP Analysis – Canada vs Australia
4/28/2023 3
11. Addressing slow growth
• Streamlining regulations as part of getting goods out of the ground to market
• Making key infrastructure capital expenditure in areas like ports, roads, and bridges.
• Addressing issues with taxation system as part of ensuring Canada has competitive tax
system with its peers around the world
• Supporting policies that will improve productivity like changes to capital cost allowance or
encouraging R&D spending on innovation or closing the skills gap as part of addressing
labor shortages.
• Streamlining government including more digital adoption
• Addressing systemic issues with affordable housing like cost/availability of land, cost of
raw materials and labor, adopting new technology like 3D printing of housing, etc.
• Promoting policies that encourage FDI inflow and outflow. The key is focusing on policies
that will keep Canada’s capital market competitive with other jurisdiction.
• Addressing the size of government through digital adoption along with value for money
and performance audits.
4/28/2023 11
12. Summary
• Canada GDP continues to face many challenges
4/28/2023 12
Blog – Canada GDP Analysis for February 2023
OTTAWA — The Canadian economy grew by 0.1 per cent in February, Statistics Canada said
Friday.
In its latest report on economic growth, the federal agency's preliminary estimate suggested real
gross domestic product grew at an annualized rate of 2.5 per cent in the first quarter.
The February figure came in lower than was expected by Statistics Canada as wholesale and
retail trade as well as manufacturing all contracted.
Boosting real GDP in February was growth in the public sector, professional, scientific and
technical services, construction and finance and insurance.
Statistics Canada revised up its January figure for real GDP to 0.6 per cent.
The Canadian economy is expected to stall this year and potentially enter a recession as high
interest rates weigh on consumers and businesses.
The Bank of Canada is holding its key interest rate steady at 4.5 per cent, the highest it's been
since 2007.
The federal agency's preliminary estimate for March suggests the economy contracted by 0.1 per
cent.
"After sprinting out of the gate to start 2023, the Canadian economy had already hit a wall by
March," CIBC economist Andrew Granthan wrote in a client note.
The expected dip in real GDP is driven by continued declines in wholesale and retail trade, in
addition to mining and quarrying.
But Grantham said the new data shouldn't change much for the Bank of Canada's outlook.
"Until there are clearer signs that slowing growth is also helping to ease core inflation, the Bank
of Canada will continue to lean towards raising interest rates, even if a hike is not ultimately
needed, with rate cuts not coming until 2024," Grantham said.
This report by The Canadian Press was first published April 28, 2023.
Nojoud Al Mallees, The Canadian Press