Canada GDP January 2016


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%

According to its January Monetary Policy Report, the Central Bank projects that the economy will grow 1.4% in 2016 and 2.4% in 2017. FocusEconomics Consensus Forecast panelists expect the economy to grow 1.7% in 2016, which is down 0.2 percentage points from last month’s estimate. For 2017, the panel expects the economy to expand 2.2%.

Author:, Economist

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Canada GDP Chart

Canada Monthly GDP January 2016 0

Note: Month-on-month changes of seasonally-adjusted GDP and year-on-year variation in %.
Source: Statistics Canada (SC) and FocusEconomics calculations.

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