Monday, 05 June 2023 02:48 GMT

Canada's Economy Grows 0.5 percent in January, Beating Market Expectations

(MENAFN) Statistics Canada has released figures showing that Canada's economy expanded 0.5 percent in January after stalling in the fourth quarter of 2022. The gain in gross domestic product (GDP) exceeded market expectations of a 0.3 percent increase, following a contraction of 0.1 percent in December 2022. The North American economy had stalled in the last quarter of 2022, ending a streak of five consecutive quarters of growth.

Canada's economy had expanded by 0.7 percent in the third quarter of 2022, and by 0.8 percent in the second quarter. The latest figures show that the mining, quarrying, and oil and gas extraction, manufacturing, and finance and insurance sectors experienced gains, which were slightly offset by decreases in construction, wholesale trade, and accommodation and food services.

While the increase in GDP in January is a positive sign for Canada's economy, it remains to be seen whether the growth will be sustained in the coming months. Statistics Canada noted that advance figures suggest that real GDP rose 0.3 percent in February, which is lower than January's growth rate.

The Canadian economy has been impacted by a range of factors in recent months, including the ongoing COVID-19 pandemic, supply chain disruptions, and rising inflation. Policymakers and businesses will need to monitor the situation closely and take steps to address any underlying issues that may be contributing to the country's economic performance.

Overall, the latest figures suggest that Canada's economy is showing signs of resilience and may be on the path to recovery following a period of stagnation. However, there are still challenges that need to be addressed to ensure sustained growth and stability in the future.


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