International

Canada’s economy grew 0.1% in November, likely was flat in December

Published Tue, Jan 31, 2023 · 10:14 PM

THE Canadian economy grew 0.1 per cent in November, matching the forecast in a Reuters poll of analysts, but was most likely unchanged in December and performed better than expected in the fourth quarter, Statistics Canada data suggested on Tuesday (Jan 31).

In a preliminary estimate for December, Statscan said gains in the retail, utilities, and public sectors were offset by decreases in sectors including wholesale and finance and insurance.

It also said annualised gross domestic product (GDP) in the fourth quarter was likely up 1.6 per cent, above the Bank of Canada’s (BOC) forecast of 1.3 per cent. The flash estimates for December and fourth-quarter GDP, which could change when data is released next month, indicate 3.8 per cent growth in 2022.

The Canadian central bank has raised its key interest rate at a record pace of 425 basis points in 10 months to cool the economy and bring inflation down. After the latest rate hike last week, the BOC said it would likely hold off on further increases.

Canada’s service-producing sector grew 0.2 per cent in November, buoyed by a third straight month of gains in transportation and warehousing. The goods-producing sector contracted 0.1 per cent in November, dragged down by declines in the construction and manufacturing industries.

The Canadian dollar was trading at 1.3430 to the greenback, or 74.46 US cents. REUTERS