Canada: GDP growth rate falls in December
February 28, 2014
GDP decreased a seasonally-adjusted 0.5% over the previous month in December, contrasting the 0.2% increase registered in November. The decrease came in below market expectations of a 0.3% fall. According to Statistics Canada, manufacturing and retail were the sectors that drove the monthly decrease.
On an annual basis, GDP rose 2.3% in December, which was below the 2.7% expansion observed in November. The overall trend increased, with annual average variation in GDP inching up from 1.8% in November to 2.0% in December.
According to its January Monetary Policy Report, the Central Bank projects that the economy will grow 2.5% in both 2014 and 2015. FocusEconomics Consensus Forecast panelists expect the economy to grow 2.4% in 2014, which is unchanged from last month's estimate. For 2015, the panel expects the economy to expand 2.6%.
Author: Carl Kelly, Economist