Economic growth resumed in January, after registering a slight contraction in December, Statistics Canada said on Friday. Gross domestic product (GDP) rose 0.5% in the first month of the year, after contracting 0.1% in the last month of 2022, the federal agency said.
Statistics Canada’s preliminary forecast for the month of February foresees growth of 0.3%, but it recalled that this data would be revised before its official publication, in a month. “There were many indications that the economy had gotten off to a good start in 2023, but today’s burst of strength is well above even the most optimistic views,” the chief economist wrote. the Bank of Montreal, Douglas Porter, in a report.
“Even if growth stagnates in March, it now looks like the first quarter will show growth of 2.5%, compared to a flat reading in the fourth quarter. As we continue to expect a noticeable slowdown over the next two quarters, we are increasing our GDP growth estimate for the whole of 2023 […] at 1.0%. »
Goods-producing industries rose 0.4% in January, while service-producing industries rose 0.6%.
Statistics Canada pointed out that many of January’s main growth drivers were also the biggest contributors to December’s decline. January’s growth was attributable to the wholesale trade, transportation and warehousing, mining and quarrying, and oil and natural gas extraction sectors, all of which declined in December.
Wholesale trade advanced 1.8% in January, supported by machinery, equipment and supplies merchant wholesalers, while the mining, quarrying and Oil and natural gas extraction rose 1.1% after falling 3.3% in December.
The transportation and warehousing sector rose 1.9% in January, more than offsetting its 1.1% decline in December, which was attributed to poor weather conditions.