GDP performance continues to defy recession expectations
Canada’s real gross domestic product (GDP) ticked upwards in February, rising by 0.2% compared with the same time last year thanks in large part to continued growth in services-producing industries.
New data released by Statistics Canada on Tuesday showed that 12 of 20 sectors witnessed growth during the month, with transportation and warehousing posting expansion of 1.4% and the public sector also recording a slight gain.
Mining, quarrying, and oil and gas extraction were up for the fourth time in five months, largely reversing a January contraction, although the utilities sector dipped thanks to milder performance in the electric power generation, transmission, and distribution industry.
For March, advance information showed that real GDP remained “essentially unchanged,” according to StatCan, with utilities, real estate, rental and leasing expected to increase while manufacturing and retail trade declines.
That would mean the economy expanded by 0.6% in 2024’s first quarter, subject to revision on May 31 – a trend that suggests continuing resilience in the face of high interest rates and an expected slowdown.
The news arrives amid growing speculation over the Bank of Canada’s likely timeline for rate cuts in 2024, with the central bank scheduled to meet for its next deliberations in just over a month (June 5).
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