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Economic news
28.03.2024

Canada’s economy grows more than predicted in January

Statistics Canada reported on Thursday that the Canadian gross domestic product (GDP) increased 0.6 per cent m-o-m in January 2024, following a downwardly revised 0.1 per cent m-o-m drop (from flat m-o-m) in the previous month. This marked the strongest monthly advance in Canada’s GDP since January 2023 (+0.6 per cent m-o-m). Economists had predicted a 0.4 per cent m-o-m growth for January.

In y-o-y terms, the Canadian GDP surged 0.9 per cent in January.

According to the report, both services-producing (+0.7 per cent m-o-m) and goods-producing (+0.2 per cent m-o-m) businesses supported the February expansion. 

Overall, 18 of the 20 industrial sectors demonstrated advances in February, led by educational services (+6.0 per cent m-o-m), utilities (+3.2 per cent m-o-m), utilities (+1.4 per cent m-o-m), information and cultural industries (+1.0 per cent m-o-m), arts, entertainment and recreation (+1.0 per cent m-o-m), and manufacturing (+0.9 per cent m-o-m). Meanwhile, mining, quarrying, and oil and gas extraction (-1.9 per cent m-o-m), and construction (-0.5 per cent m-o-m) were the only sectors that showed decreases.

It was also reported that preliminary data indicates that real GDP grew 0.4 per cent m-o-m in February, reflecting broad-based increases across industries, led by mining, quarrying, and oil and gas extraction, manufacturing, and finance and insurance, which were partially offset by a decrease in utilities.

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