Canada’s real gross domestic product (GDP) rose 1.1 per cent in February, the largest monthly growth rate since March 2021, as broad-based increases across most sectors contributed to the ninth consecutive monthly expansion in economic output, according to the national statistical office.
Advance information indicated that real GDP increased 0.5 per cent for March and 1.4 percent for the first quarter of 2022, Xinhua news agency quoted Statistics Canada as saying on Friday
The office added that these estimates will be updated on May 31 with the release of the official GDP data.
“Client-facing industries led the growth on continued reopening of activities and easing of restrictions put in place at the onset of Omicron variant,” said Statistics Canada.
Royal Bank of Canada economist Claire Fan said in a market report that the preliminary monthly GDP readings are tracking a 5.5 per cent increase in the first quarter of 2022 on annualized basis.
“That’s higher than our current forecast of 3.5 per cent and well above the 1.4 per cent annualised contraction in the same quarter for US GDP,” Fan said.
Canadian Imperial Bank of Commerce economist Karyne Charbonneau forecasted that with another strong release in hand, the central bank of Canada has even more ammunition to justify a non-standard 50 basis point interest rate hike at the next meeting, and likely the one thereafter.