Canada: GDP decelerates in February
May 2, 2014
GDP increased a seasonally-adjusted 0.2% over the previous month in February, which was down from the 0.5% expansion registered in January, but met market expectations. According to Statistics Canada, mining, oil and gas extraction and manufacturing were the sectors that drove the monthly increase and more than offset a contraction in agriculture and forestry.
On an annual basis, GDP rose 2.5% in February, which was slightly below the 2.6% expansion observed in January. The overall trend increased, with annual average variation in GDP inching up from 2.1% in January to 2.2% in February.
According to its April Monetary Policy Report, the Central Bank projects that the economy will grow 2.3% in 2014 and 2.5% in 2015. FocusEconomics Consensus Forecast panelists expect the economy to grow 2.3% in 2014, which is unchanged from last month's estimate. For 2015, the panel expects the economy to expand 2.6%.
Author: Armando Ciccarelli, Head of Data Solutions