Canada's economy falters in February; Q1 GDP shows strong 2.5% growth

Posted on May 3, 2024   |  

Canada experienced a 0.2% increase in gross domestic product (GDP) in February, falling short of market expectations, with a projected 2.5% annualized growth rate for the first quarter.

January's growth was revised downward to 0.5% from the initial 0.6%.

March's preliminary estimate suggests GDP remained stable compared to February, with gains in utilities and real estate offsetting declines in manufacturing and retail trade.

If the projected 2.5% growth in the first quarter materializes, it would represent the fastest growth rate since the first quarter of 2023.

Quarterly GDP figures, calculated differently, will be released next month, differing from the monthly report based on Canada's industrial output.

The Bank of Canada (BoC) predicts first-quarter growth of 2.8% and second-quarter growth of 1.5%, with the economic rebound easing pressure on the central bank to lower rates.