The Canadian economy grew at an annualized rate of 1.7% in the first quarter, falling short of expectations, with real gross domestic product (GDP) likely rising by 0.3% on a monthly basis in April, according to data released on Friday.
This quarterly growth rate lagged behind the 2.2% pace predicted by analysts in a Reuters poll and the Bank of Canada’s (BoC) forecast of 2.8%. Additionally, fourth-quarter GDP growth was revised down to an annualized rate of 0.1% from the initially reported 1.0%, as per Statistics Canada data.
The GDP report indicates that Canada’s economy did not recover from last year’s downturn as robustly as initially suggested. This might prompt the central bank to consider lowering borrowing costs in June. The report is the last significant data release before the BoC’s interest rate announcement on June 5, when three-quarters of the 29 economists polled by Reuters anticipate a 25 basis-point cut.
Statscan reported that first-quarter growth was primarily driven by increased household spending on services, while slower inventory accumulations tempered overall growth.
Household final consumption expenditures per capita edged up by 0.1% in the first quarter after three quarters of declines. Per capita spending on services rose by 0.5%, whereas per capita spending on goods fell for the tenth consecutive quarter.
GDP growth was flat in March compared to February, aligning with forecasts. Despite stability in both goods-producing and services-producing industries, the construction subsector saw a 1.1% increase in March, the largest monthly growth rate since January 2022.
In an advance estimate for April, Statscan projected a 0.3% GDP rise, driven by gains in manufacturing, mining, quarrying, oil and gas extraction, and wholesale trade, partially offset by declines in utilities.
April’s forecast suggests a positive start to the second quarter. The BoC’s economic forecasts from last month projected a 1.5% annualized growth rate for the second quarter.
Following its last rate decision in April, when the BoC maintained its key policy rate at a 23-year high of 5%, Governor Tiff Macklem mentioned that a rate cut in June could be considered if inflation continued to move towards the 2% target.
Earlier this month, Statscan data showed inflation had eased to a three-year low of 2.7% in April, with core measures also cooling.
Before the release of the GDP data on Friday, money markets indicated nearly a 60% chance of a rate cut on Wednesday.
.
#everyday_information #forex #option #Binary_Option #trading #trader #goldstocks #forextrader #fx_trade_time #fxttime #USDollar #euro #JPY #GBP #chfcurrency
#dubai #UAENews #ksasaudiarabia #Syrian #iraq #kuwait #jordan #morocco #Libya #tunisia #algerian #Egypt #qatar #lebanon
#كل_يوم_معلومه #فوركس #خيارات_ثنائيه #تداول_عملات #بورصه #ذهب #فوركس_تريد_تايم #اف_اكس_تريد_تايم #دولار #يورو
#دبي #امارات #السعوديه #سوريا #العراق #الكويت #الاردن #المغرب #ليبيا #تونس #الجزائر #مصر #قطر #لبنان
.
www.fxttime.com/trade