Canada Economic Forecast
May 31, 2022After gaining momentum in Q4 2021, preliminary data suggests the economy outperformed its G7 peers in Q1, with StatCan estimating growth of 1.4% quarter-on-quarter. Looking at the monthly picture, economic activity growth was muted in January due to Omicron and poor weather affecting energy output. However, momentum picked up in February thanks to healthy expansions in manufacturing and customer-facing services. In particular, the accommodation and food services sector saw a double-digit gain as the Omicron wave faded and associated restrictions were eased. Turning to Q2, available signs are mainly positive. In April, the unemployment rate fell to an all-time low, while the manufacturing PMI was well in expansionary territory and housing starts jumped, boding well for residential investment. However, multi-decade high inflation could be weighing somewhat on spending intentions.
Canada Economic GrowthGrowth will ease in 2022 as interest rates and inflation increase and momentum in the U.S. slows. Nevertheless, a tighter labor market and reduced Covid-19 restrictions will support private spending. Moreover, higher oil and gas prices will buoy government coffers. Uncertainty surrounding possible new Covid-19 variants and fears of recession in the U.S. are risks. FocusEconomics analysts project growth of 4.0% in 2022, which is up 0.1 percentage points from last month. In 2023, our analysts see growth easing to 2.5%.
Canada Economy Data
5 years of Canada economic forecasts for more than 30 economic indicators.
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|Bond Yield||1.70||1.00 %||Dec 31|
|Exchange Rate||1.30||0.15 %||Jan 01|
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Canada Economic News
June 22, 2022
Consumer prices rose a record-high seasonally-adjusted 1.07% from the previous month in May, picking up from the 0.88% increase logged in April.
June 17, 2022
According to the Teranet-National Bank Composite House Price Index, house prices increased 2.3% month-on-month in May.
June 15, 2022
Housing starts rose to 287,257 units on a seasonally-adjusted annualized rate (SAAR) basis in May according to the Canada Mortgage and Housing Corporation (CMHC), up 8% from April’s reading.
June 1, 2022
The S&P Global Manufacturing Purchasing Managers' Index (PMI) came in at 56.8 in May, up from April's 56.2.
June 1, 2022
On 1 June, the Bank of Canada (BoC) raised its target for the overnight rate to 1.50% from 1.00%, marking the third consecutive rate hike this year.