Canada’s economic output stronger than expected
The 0.2% increase in Canada’s GDP in November beat the preliminary estimate of 0.1%
By Rob Roach, ATB Economics 31 January 2024 1 min read
Helped along by increased oil production in Alberta and growth in the manufacturing and transportation sectors, Canada’s economic output rose for the first time in six months in November.
The 0.2% increase in Canada’s GDP in November beat the preliminary estimate of 0.1% provided by Statistics Canada in its previous release. The new preliminary estimate pegs growth in December at 0.3%.
If these estimates prove accurate (we will get a better picture of what happened in the fourth quarter from Statistics Canada at the end of February), Canada has dodged a second quarter of negative growth.
Despite what looks to be a stronger-than-expected handoff at the end of last year, Canada’s economy is still forecast to be in low gear over the first half of 2024 under the weight of the interest rate increases initiated by the Bank of Canada back in 2022.
And, even if growth over the last three months of 2023 was positive—perhaps as high as 1.2%—this is still not a stellar performance by the Canadian economy. With that said, it might raise some eyebrows at the Bank of Canada as it waits to see if inflation will come down enough to begin reducing borrowing costs.
Answer to the previous trivia question: The first Pizza Hut opened in 1958 in Wichita, Kansas.
Today’s trivia question: Tomorrow (Feb 1) is National Freedom Day in the U.S. What does the day commemorate?