Canada’s Economy Continues Steady Growth, Estimates to be Updated on May 31

Statistics Canada said on Friday that advance information indicated that real GDP increased 0.5 per cent for March and 1.4 percent for the first quarter of 2022, quoted Xinhua news agency.

Ottawa: According to the national statistical office of Canada, the country’s real gross domestic product (GDP) rose 1.1 per cent in February which is the largest monthly growth rate since March 2021 as broad-based increases across most sectors contributed to the ninth consecutive monthly expansion in economic output.

Statistics Canada said on Friday that advance information indicated that real GDP increased 0.5 per cent for March and 1.4 percent for the first quarter of 2022, quoted Xinhua news agency.

These estimates will be updated on May 31 with the release of the official GDP data, added the office.

“Client-facing industries led the growth on continued reopening of activities and easing of restrictions put in place at the onset of Omicron variant,” said Statistics Canada.

Claire Fan, a Royal Bank of Canada economist, said in a market report that the preliminary monthly GDP readings are tracking a 5.5 per cent increase in the first quarter of 2022 on an annualized basis.

“That’s higher than our current forecast of 3.5 per cent and well above the 1.4 per cent annualised contraction in the same quarter for US GDP,” Fan said.

Karyne Charbonneau, the Canadian Imperial Bank of Commerce economist forecasted that with another strong release in hand, the central bank of Canada has even more ammunition to justify a non-standard 50 basis point interest rate hike at the next meeting, and likely the one thereafter.