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Economic news
31.03.2023

Canada’s economy grows more than projected in January

Statistics Canada reported on Friday that the Canadian gross domestic product (GDP) grew 0.5 percent m-o-m in January 2023, following an unrevised 0.1 percent m-o-m fall in December 2022. That marked the sharpest monthly advance in Canada’s GDP since March 2022 (+0.7 percent m-o-m). Economists had predicted a 0.3 percent m-o-m increase for January.

In y-o-y terms, the Canadian GDP jumped 3.0 percent in January.

According to the report, both services-producing (+0.6 percent m-o-m) and goods-producing (+0.4 percent m-o-m) businesses underpinned the January growth.

Overall, 17 of the 20 industrial sectors saw expansion in January, led by accommodation and food services (+4.0 percent m-o-m), arts, entertainment and recreation (+2.1 percent m-o-m), transportation and warehousing (+1.9 percent m-o-m), wholesale trade (+1.8 percent m-o-m), and mining, quarrying, and oil and gas extraction (+1.1 percent m-o-m). Meanwhile, management of companies and enterprises (-3.2 percent m-o-m), utilities (-1.8 percent m-o-m), and agriculture, forestry, fishing and hunting (-1.1 percent m-o-m) witnessed declines.

It was also reported that preliminary data indicates that real GDP increased 0.3 percent m-o-m in February.

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