In the fourth quarter, GDP increased 1.8% in seasonally adjusted annualized terms over the previous quarter. The result was down from the revised 4.2% expansion recorded in the third quarter (previously reported: 3.5% quarter-on-quarter saar) but came in virtually in line with last month's Consensus Forecast of a 1.9% increase. The deceleration over the previous quarter was entirely caused by a deterioration in the external sector, as domestic demand expanded at a stronger pace than in Q3. Private consumption picked up from a 1.8% increase in the third quarter to a 2.9% rise in the third, while business fixed investment accelerated from a 5.2% expansion in the third quarter to a 6.3% rise. Meanwhile, exports of good and services decelerated sharply, expanding only 4.6% in the fourth quarter (Q3 2011: +16.0% qoq saar). Imports, on the other hand, bounced back from a 1.5% contraction in the third quarter to a 2.2% increase. As a result, the contribution from net exports to overall economic growth fell from 4.2 percentage points in the third quarter to just 0.5 percentage points in the fourth. For the full year 2011, GDP expanded 2.5%, which was down from the 3.2% growth rate observed in 2010. The Central Bank projects the economy to grow 2.0% in 2012 and 2.8% in 2013.
Economy slows down on external sector deterioration
February 29, 2012
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Canada Economic News
October 21, 2016
In September, seasonally-adjusted consumer prices increased 0.2% from the previous month, which contrasted the 0.1% decrease recorded in August and marked the highest print in three months.
October 19, 2016
At its 19 October policy meeting, the Bank of Canada (BoC) decided to maintain its target for the overnight rate at 0.50%, despite a weaker inflation and growth outlook.
October 11, 2016
The Teranet-National Bank National Composite House Price index rose 0.7% in September from the previous month, which followed the 1.5% increase in August.
October 8, 2016
Seasonally-adjusted annualized housing starts registered 220,600 units in September, according to the government-owned Canada Mortgage and Housing Corporation (CMHC).
October 7, 2016
The Ivey Purchasing Managers’ Index (PMI), sponsored by the Richard Ivey School of Business and the Purchasing Management Association of Canada, increased a seasonally-adjusted 6.1 points in September, rising from 52.3 in August to 58.4.