Canada GDP


Economy maintains momentum in the first quarter

In the first quarter, GDP increased 1.9% in seasonally adjusted annualized terms over the previous quarter. The result was unchanged from the fourth quarter's figure (previously reported: +1.8% quarter-on-quarter saar) and came in line with market expectations. The stable growth in the first quarter mainly reflected how an acceleration in the domestic sector was offset by a deterioration in the external side of the economy. Private consumption decelerated from a 2.8% increase in the fourth quarter to a 0.9% rise in the first, while business fixed investment accelerated from a 4.2% expansion in the fourth quarter to a 7.6% increase. Government consumption, on the other hand, declined 1.7% (Q4 2011: +0.4% qoq saar). GDP growth in the first quarter was also positively affected by a build-up in inventories. Meanwhile, exports of goods and services decelerated sharply, expanding only 2.5% in the first quarter (Q4 2011: +7.2% qoq saar). Imports, on the other hand, accelerated from a 2.3% rise in the fourth quarter to a 4.4% expansion in the first. As a result, the contribution from net exports to overall economic growth swung from plus 1.4 percentage points in the fourth quarter to minus 1.1 percentage points in the first.


Sample Report

Looking for forecasts related to GDP in Canada? Download a sample report now.


Note: Quarter-on-quarter changes of seasonally adjusted annualized GDP and year-on-year variation in %.
Source: Statistics Canada (SC) and FocusEconomics Consensus Forecast.

Canada Economic News

More news

Search form