Canada: GDP rebounds in January on strong manufacturing
March 28, 2013
In January, GDP increased a seasonally adjusted 0.2% over the previous month, which contrasted December's 0.2% drop and was above market expectations of a 0.1% expansion. According to Statistics Canada, manufacturing was the largest contributor to January's growth.
On an annual basis, GDP rose 1.0% in January, which was above the 0.7% increase observed in December. That said, the trend continues to point downwards, with annual average variation in GDP inching down from 1.8% in December to 1.7% in January, the lowest level in 29 months.
According to its January Monetary Policy Report, the Central Bank projects the economy to grow 2.0% this year and 2.7% in 2014 (previously forecasted: 2.3% and 2.4%, respectively). FocusEconomics Consensus Forecast panellists are slightly less optimistic and expect the economy to grow 1.9% in 2013, which is down 0.1 percentage points from last month's estimate. For 2014, the panel expects the economy to expand 2.5%.