The Canadian economic system outpaced expectations within the closing quarter of the 12 months, Statistics Canada mentioned Friday, thanks largely to a surge in family spending.
Actual gross home product rose 2.6 per cent on an annualized foundation within the fourth quarter, the company mentioned.
That is properly above calls from the consensus of economists polled by Reuters forward of the discharge, in addition to the Financial institution of Canada, each of which anticipated actual GDP to rise 1.8 per cent annualized.
Friday’s launch additionally confirmed the Canadian economic system grew 2.2 per cent annualized within the third quarter of 2024, revised up from preliminary estimates for one per cent progress.
Family spending rose 1.4 per cent within the fourth quarter, the quickest tempo in additional than two years, Statistics Canada mentioned. Development was led by purchases of recent vehicles, vans and sports activities utility autos.
Retail exercise was notably robust within the closing month of the 12 months. Statistics Canada mentioned December’s 2.6 per cent progress in retail commerce was the most important soar since June 2021, when in-person buying restrictions tied to the COVID-19 pandemic started to loosen.
Regardless of disruptions from the Canada Submit strike, the transportation sector bumped larger in December, due to a surge in enterprise for couriers and the top of rail and port strikes in November resulting in a rebound in progress.
Residential building additionally rose at its quickest charge in additional than three years within the fourth quarter, the company mentioned, whereas drawdowns on enterprise inventories offset progress.
Statistics Canada mentioned actual GDP per capita grew 0.2 per cent final quarter. On a per-person foundation, the Canadian economic system had contracted in 5 of the final seven quarters, although the company revised leads to the second quarter of 2024 up into constructive territory.
Statistics Canada mentioned actual GDP rose 0.2 per cent in December and its early estimate requires progress to barely speed up to 0.3 per cent in January.
The most recent GDP figures paint an image of a Canadian economic system ticking larger heading into 2025 after a collection of rate of interest cuts from the Financial institution of Canada geared toward stimulating progress.
However that trajectory is in danger below threats of tariffs from U.S. President Donald Trump, whose deadlines to impose expensive import taxes on Canadian items close to.
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