Canada's economy expands in Q4 2023, avoiding recession

Posted on March 4, 2024   |  

Canada's economy avoids recession as GDP edges up in Q4, driven by higher crude oil exports and reduced imports.

Real GDP increases by 1% annually for the three months ending Dec. 31, exceeding expectations, following a 0.5% decline in Q3.

GDP has risen for the 3rd consecutive year since 2020, showing a 0.4% increase in January.

Final domestic demand decreases by 0.2% in Q4 after a 0.2% rise in the previous quarter.

Exports of goods and services grew by 1.4% in Q4, led by a 6.2% surge in crude oil and crude bitumen exports, while imports dropped by 0.4%.

Household spending grew by 0.2% in Q4, contrasting with a 0.1% decline in the previous quarter, while investment in housing fell by 0.4%.

Business investment fell for the 6th time in the past seven quarters, with investment in non-residential structures dropping by 3%.

Employee compensation rises by 0.8% for the quarter, marking the slowest growth rate since Q2 2020.