GDP in Canada
Canada - GDP (billions of U.S. Dollars)
GDP dips in July; preliminary estimate points to a strong increase in August
The economy dipped 0.1% month-on-month in July, after rising 0.6% in June. Economic activity rose 4.7% year-on-year in July, easing from June’s 7.7% increase, and predominately driven by a low base effect due to heightened restrictions to curb the spread of the virus in the same month last year.
In July, the services-producing industries increased at a softer pace due to weaker retail trade output. Moreover, the goods-producing industries declined at a quicker pace in July, driven by a sharp drop in the utilities and construction sub sectors.
Moreover, Statistics Canada released a special flash GDP estimate for August to provide a snapshot of the state of the economy. The preliminary figure pointed to a 0.7% increase in activity on a seasonally-adjusted month-on-month basis. Although a detailed breakdown was not released, the flash estimate attributed August’s increase to stronger retail trade, manufacturing, and accommodation and food output.
Commenting on the short-term outlook, Sri Thanabalasingam, senior economist at TD Economics, noted:
“So, it appears the Canadian economy ended the summer on a high note, but the fall season could lower the octave. Cooling weather and the resurgence of the pandemic (already occurring in Alberta and Saskatchewan) could dampen enthusiasm for recreational activities. At the same time, Canadians are likely to not redirect spending toward goods, an area which they had indulged during most of the pandemic. This could test the resilience of the economy in the months ahead.”
FocusEconomics Consensus Forecast panelists see the economy growing 5.4% in 2021, which is up 0.7 percentage points from the previous month’s forecast, before growing 3.8% in 2022.
Canada - GDP (USD bn) Data
|GDP (USD bn)||1,556||1,529||1,649||1,716||1,736|
5 years of economic forecasts for more than 30 economic indicators.
|Bond Yield||1.70||1.00 %||Dec 31|
|Exchange Rate||1.30||0.15 %||Jan 01|
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November 17, 2021
Consumer prices increased a seasonally-adjusted 0.49% over the previous month in October, a weaker increase than September's 0.56% rise.
November 16, 2021
Housing starts fell to 236,554 units on a seasonally-adjusted annualized rate (SAAR) basis in October according to the Canada Mortgage and Housing Corporation (CMHC), from September’s 249,922-unit reading.
November 1, 2021
In October, the IHS Markit Manufacturing Purchasing Managers’ Index (PMI) rose to 57.7 from August’s 57.0.
October 27, 2021
At its meeting on 27 October, the Bank of Canada (BoC) held its target for the overnight rate at 0.25%—its effective lower bound—in line with market analysts’ expectations.
October 20, 2021
Consumer prices increased a seasonally-adjusted 0.42% over the previous month in September, a smaller increase than August's 0.49% increase.