What is GDP?
Gross domestic product (GDP) is a statistic that economists use to measure the overall amount of products and services produced in a rustic during a selected time period, normally 1 / 4 or a 12 months. This number is calculated in one in all 3 ways.
Read the complete definition within the MoneyDown Glossary: What is GDP?
Where GDP is heading in Canada
The agency added that it expects growth to proceed in February, with a preliminary estimate pointing to a 0.4% gain for the month, supported by strength within the mining, quarrying, oil and gas extraction, manufacturing and manufacturing sectors Finance and insurance.
Andrew Grantham, senior economist at CIBC, said the Canadian economy gave the impression to be entering 2024 on the fast track. “Although growth in January was flattered by a recovery in the public sector following strike activity in Quebec, solid momentum appears to have continued into February,” he wrote in a note to clients.
Grantham added that overall first-quarter growth was well above the Bank of Canada’s previous expectations and subsequently there was no urgency for the central bank to chop rates of interest at its April meeting.
“However, a move is still possible in June if labor market conditions continue to ease and core inflation maintains its downward momentum,” he said.
The Bank of Canada’s key rate of interest is 5%. The central bank expects to start cutting rates of interest sometime this 12 months, but its latest summary of deliberations shows its officials disagree on when. (Read “Understanding the Bank of Canada’s March 6, 2024 interest rate decision.”)
The current inflation rate
Year-on-year inflation was 2.8% in February, however the central bank stays concerned that inflation might be higher than expected, particularly as the fee of accommodation continues to rise.
Growing Sectors in Canada
Statistics Canada said January’s economic growth got here as the general public sector, which incorporates educational services, health and social assistance and public administration, grew 1.9% after two straight monthly declines.
The educational services sector rose 6.0%, after declining in November and December resulting from the strikes in Quebec, while the health and social assistance sector, also affected by the strikes, rose 0.8%.
