- Statistics Canada reported that Canada’s gross domestic product increased 0.1 per cent in February following a 0.6 per cent increase the month before
- The federal agency’s preliminary estimate for March says the economy contracted by 0.1 per cent
- February’s figure comes in lower than was expected, as wholesale and retail trade as well as manufacturing all contracted. 12 of 20 economic sectors in all increased during the month
- As high interest rates weigh on consumers and businesses, economists expect Canada’s economy could stall later this year and potentially enter a recession
Canada’s gross domestic product (GDP) increased 0.1 per cent in February 2023 following a 0.6 per cent increase the month before.
This is according to the latest data from Statistics Canada.
The federal agency’s preliminary numbers suggest real GDP grew at an annualized rate of 2.5 per cent in Q1 2023. Its estimate for March says the economy contracted by 0.1 per cent.
February’s figure comes in lower than was expected, as wholesale and retail trade as well as manufacturing all contracted. 12 of 20 economic sectors in all increased during the month.
The public sector that includes education and health care rose 0.2 per cent, up for the 13 consecutive month. Construction activity in Canada also grew for a fifth consecutive month, rising 0.3 per cent. Finance and insurance activity also increased, up 0.3 per cent, a second consecutive monthly advance.
A big gainer in January lost some ground in February as Canada’s wholesale trade contracted 1.3 per cent.
One downward trend that was watched last year continues – building material and supplies wholesalers. Motor vehicle and motor vehicle parts and accessories wholesalers also posted a 4.4 per cent decline in, hitting their lowest level since June 2020. Also during February, retail sales decreased 0.5 per cent in Canada, its first decline in three months. Canada’s manufacturing sector slid 0.1 per cent in February as non-durable goods manufacturing lost 0.3 per cent that month.
The GDP is an economic gauge that the Bank of Canada and measures the market value of goods and services produced and sold.
As high interest rates weigh on consumers and businesses, economists expect Canada’s economy could stall later this year and potentially enter a recession.
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