Canada: Monthly GDP records strong growth in the beginning of the year
March 31, 2016
In January, monthly GDP grew 0.6% over the previous month in seasonally-adjusted terms. The tally was well above the 0.2% growth recorded in December and comfortably beat market expectations of a 0.3% increase. In addition, the result marked the highest growth rate since July 2011. Growth in manufacturing drove January’s expansion, helped by the weak dollar. Oil and gas extraction also showed a sizable increase, as activity rose in Alberta’s tar sands, allaying some concerns over the health of the energy industry.
On an annual basis, GDP grew 1.5% in January, an acceleration from December’s 0.6% expansion and the best result in one year. Despite the increase, the overall trend remained steady in January at December’s 0.9%
Author: Robert Hill, Economist