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Recession spotting

Canada’s economy continued to grow in April

By Siddhartha Bhattacharya, ATB Economics 5 July 2023 1 min read

The national economy has been slowing since a solid performance in January, but growth managed to remain in positive territory in April.

Following a 0.1% increase in March, Canadian GDP was essentially unchanged as the federal workers’ strike weighed on economic activity in April.

Caused by the Public Service Alliance of Canada strike, federal government public administration GDP fell by 3.4% in the month to the lowest level since April 2022. This was, however, mostly offset by a 1.2% increase in mining, quarrying, oil and gas extraction GDP.

Up 2.3% year-to-date, Canadian GDP growth over the first four months of 2023 has been stronger than expected by many forecasters.

Currently, Statistics Canada’s advance estimate suggests a 0.4% monthly increase in May on the back of strong manufacturing and wholesale activity.

Despite the fairly resilient performance in the early months of 2023, signs of a slowdown are evident.

On a year-over-year basis, GDP growth stood at 1.7% in April, the lowest increase posted since February 2021.

Looking ahead, interest rate hikes are expected to hinder overall economic progress as they work through the economy over the rest of the year.

Answer to the previous trivia question: Descendants of the signers of the Declaration of Independence tap the Liberty Bell 13 times on July 4 in honour of the original 13 U.S. states.

Today’s trivia question:  Which stock exchange is the largest in the world as measured by market cap?

On a year-over-year basis, GDP growth stood at 1.7% in April, the lowest increase posted since February 2021

GDP grew by 1.7% in April 2023 compared to the previous April

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