Canada: Economic growth accelerates in the last quarter of 2010
February 28, 2011
In the fourth quarter, GDP added 3.3% in seasonally adjusted annualized terms (Q3: +1.8% qoq saar), overshooting market expectations, which had seen GDP increasing 2.9%. In the full year, the economy rebounded from a 2.5% contraction in 2009 and added 3.1% in 2010. The Q4 performance was bolstered by resilient growth in the external sector, as the net contribution to overall economic growth improved from a 4.3 percentage-point detraction in the third quarter to a 3.1 percentage-point increase in the fourth. Growth in exports accelerated to 17.1% in the fourth quarter (Q3: -3.2% saar), while imports added 0.5% (Q3: +8.1% saar). Domestic demand also contributed to the strong GDP print in Q4, as growth in private consumption accelerated to 4.9%, following the 2.4% rise in the third quarter. On the other hand, business fixed investment grew 6.1% in the fourth quarter (Q3: +9.5% saar).