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Canada's First Quarter GDP Increased 0.8%
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Canada's gross domestic product (GDP) rose 0.8% in the first quarter of the year after posting no change in the previous fourth and final quarter of 2022.
The country's economic expansion in Q1 was aided by growth in international trade and household spending, said Statistics Canada.
However, that growth was partially offset by lower inventory accumulations and declines in housing and business investments.
Exports of goods and services rose 2.4% in Q1 following a 0.5% increase in the fourth quarter of last year. At the same time, imports of goods and services rose 0.2% in Q1 after posting a 3.3% decline in Q4 2022.
Statistics Canada said that after two quarters of weak growth, household spending rose for both goods (up 1.5%) and services (up 1.3%) in this year's first quarter.
However, housing investment fell 3.9%, the fourth consecutive quarterly decrease, as mortgage costs continue to rise across the country.
Business investment in machinery and equipment declined 2.5% in Q1, the third consecutive quarterly decline. The decrease was led by lower spending on heavy trucks, buses, and other motor vehicles.
Lower inventory accumulations in the first quarter put pressure on Canada's GDP growth, led by declines in farm inventories and the stock of motor vehicles.
Employee compensation rose 1.7% in the first quarter, following a 1.2% increase in the previous fourth quarter. This marked the largest quarterly growth in employee compensation since the second quarter of 2022.
The next scheduled date for the Bank of Canada to announce a change to its trendsetting overnight interest rate is on June 7 of this year.
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