Investment in Canada
Canada - Investment
GDP growth disappoints in Q1
Economic growth moderated in the first quarter, with GDP increasing 3.1% in seasonally-adjusted annualized terms (SAAR) (Q4 2021: +6.6% SAAR). This was notably below market expectations and those of our panelists, with the undershoot largely linked to a sharper-than-expected decline in exports.
Private consumption increased 3.4% in the first quarter, which was above the fourth quarter's 1.8% expansion. Spending was likely boosted by a notable fall in the unemployment rate. Public spending growth moderated to 1.8% in Q1 (Q4 2021: +2.3% SAAR) amid the winding-down of pandemic support measures. Meanwhile, fixed investment growth improved to 11.0% in Q1, from the 9.4% increase logged in the prior quarter, led by investment in residential and non-residential structures.
Exports of goods and services contracted 9.4% in Q1 (Q4 2021: +13.6% SAAR), as energy exports fell amid transportation bottlenecks. In addition, imports of goods and services deteriorated, contracting 2.8% in Q1 (Q4 2021: +16.9% SAAR).
Looking to Q2, a flash estimate from Statistics Canada put month-on-month growth in April at 0.2%, with expansions in energy and transport more than offsetting contractions in the housing, manufacturing and construction sectors.
FocusEconomics analysts project growth of 4.0% in 2022, which is up 0.1 percentage points from last month. In 2023, our analysts see growth easing to 2.5%.
Canada - Investment Data
|Investment (annual variation in %)||-4.3||-4.0||4.0||1.8||-0.4|
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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June 22, 2022
Consumer prices rose a record-high seasonally-adjusted 1.07% from the previous month in May, picking up from the 0.88% increase logged in April.
June 17, 2022
According to the Teranet-National Bank Composite House Price Index, house prices increased 2.3% month-on-month in May.
June 15, 2022
Housing starts rose to 287,257 units on a seasonally-adjusted annualized rate (SAAR) basis in May according to the Canada Mortgage and Housing Corporation (CMHC), up 8% from April’s reading.
June 1, 2022
The S&P Global Manufacturing Purchasing Managers' Index (PMI) came in at 56.8 in May, up from April's 56.2.
June 1, 2022
On 1 June, the Bank of Canada (BoC) raised its target for the overnight rate to 1.50% from 1.00%, marking the third consecutive rate hike this year.