Data suggest economic activity climbed above pre-pandemic levels for the first time in fourth quarter
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OTTAWA — The Canadian economy most likely outperformed in the fourth quarter, official data suggested on Tuesday, with economic activity climbing above pre-pandemic levels for the first time.
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The economy grew 0.6 per cent in November, beating analyst expectations for a gain of 0.3 per cent, but was most likely unchanged in December, Statistics Canada said on Tuesday. It said annualized gross domestic product in the fourth quarter was likely up 6.3 per cent, beating the Bank of Canada’s forecast of 5.8 per cent.
The central bank held its key interest rate unchanged last week, but said hikes were coming as Canada’s economy no longer needed extraordinary support to deal with the effects of the COVID-19 pandemic.
The December and fourth-quarter GDP numbers are preliminary estimates, with official data coming next month. With December’s estimate, economic activity is now 0.2 per cent above the level in February 2020.
Canada’s goods-producing sector expanded 0.5 per cent in November, while the service-producing sector grew 0.6 per cent.
The Canadian dollar was trading 0.1 per cent higher at 1.2689 to the greenback, or 78.81 U.S. cents. Money markets are pricing in a first Canadian rate hike in March, with six increases this year.
© Thomson Reuters 2022
