Canada's economy unexpectedly stalled in Q4; January rebound likely

view original post

OTTAWA, Feb 28 (Reuters) – The Canadian economy recorded no growth in the final three months of 2022, massively underperforming expectations, though economic activity likely rebounded with a 0.3% increase in January, Statistics Canada data showed on Tuesday.

The 0.0% growth reading in fourth-quarter gross domestic product capped five consecutive quarterly increases and missed analysts’ average forecast of a 1.5% rise. It was also well below the Bank of Canada’s forecast for 1.3% annualized GDP growth in the quarter.

The economy contracted 0.1% in December from November, also below analysts’ expectations that GDP would be unchanged in the month.

Still, Statscan said the economy likely started 2023 on a stronger footing, with increases in sectors including mining, quarrying, and oil and gas extraction and wholesale trade indicating a 0.3% rise.

Reporting by Ismail Shakil and Dale Smith in Ottawa; Editing by Paul Simao

Our Standards: The Thomson Reuters Trust Principles.