Canadian economy poised to surpass initial quarter predictions

Posted on April 1, 2024   |  

Canada's economy displays resilience with substantial growth recorded in the first two months of 2024, supporting the Bank of Canada's cautious approach to interest rate policies.

February witnessed a 0.4% increase in gross domestic product (GDP), primarily driven by notable gains in sectors such as oil and gas, manufacturing, and finance.

January's economic performance exceeded expectations with a 0.6% expansion, notably driven by the recovery in the education sector post-strikes in Quebec.

Revised data for December revealed a slight contraction of 0.1% in GDP figures.

Based on industry-based data, the first quarter of 2024 is projected to witness an annualized increase of 3.5%, assuming March maintains steady output levels.

Non-farm payrolls in Canada saw a rise of 39,800 in January, alongside a notable 3.9% year-on-year increase in average weekly earnings.

January's growth was widespread across various sectors, with services-producing industries recording a 0.7% increase and goods-producing sectors witnessing a 0.2% rise.

Noteworthy sectoral performances include a 6% growth in the education sector, a 0.8% increase in healthcare and social assistance, and a 0.9% growth in manufacturing.