Canada GDP February 2017


Canada: Economic growth hits pause with February's GDP print

April 28, 2017

The Canadian economy took a breather in February following three months of growth, with seasonally-adjusted GDP growth flat from a month earlier. The result came in below the 0.6% month-on-month expansion recorded in January. The February print, released by Statistics Canada, met analysts’ expectations of a cool-off but nonetheless left the economy on track to meet the Bank of Canada’s revised GDP growth target for the year (+2.6%).

February’s null reading was due to uneven growth across sectors, and saw gains in services-producing industries offset by contractions in goods-producing industries. The most significant contractions were experienced in the agricultural and manufacturing sectors, while the greatest gains were posted in the finance, insurance and construction sectors. Given Statistics Canada’s eleven-sector breakdown, a majority experienced declines. Moreover, manufacturing’s contraction from a month earlier was the largest negative contributor to the flat reading.

On an annual basis, GDP jumped 2.5% in February, which came in above January’s 2.3% rise, while annual average economic growth edged up to 1.5% from 1.4% a month earlier.

In its April monetary policy report, the Bank of Canada revised its 2017 GDP forecast up to 2.6% and its 2018 GDP forecast down to 1.9%. FocusEconomics Consensus Forecast panelists expect the economy to grow 2.2% in 2017, which is up 0.1 percentage points from last month’s estimate. For 2018, the panel expects the economy to expand 2.0%.


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Canada GDP Chart

Canada Monthly GDP February 2017

Note: Month-on-month changes of seasonally-adjusted GDP and year-on-year variation in %.
Source: Statistics Canada (SC) and FocusEconomics calculations.

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