Canada: Economy roars into 2017 with strong January GDP print
March 31, 2017
The economy gained pace in January, with GDP growing 0.6% from a month earlier in seasonally adjusted terms. The result came in ahead of the 0.3% expansion recorded in December and marked a seven-month high. January’s figure also sailed above analysts’ expectations of a 0.3% expansion.
According to Statistics Canada, January’s jump was nearly broad-based as eight of eleven sectors recorded gains. A breakdown of the print shows that growth was mainly driven by strong performance in the manufacturing sector, which was the largest contributor to growth. In close second was the mining and energy sector, which put last year’s wildfires firmly in the rearview. Wholesale trade also performed well, while utilities, agriculture and forestry recorded modest declines.
On an annual basis, GDP jumped 2.3% in January, which came in above December’s 2.1% rise, while annual average economic growth edged up to 1.4% from 1.3% a month earlier.
Author: Christopher Thomas, Economist