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Canada’s economy grew 3.1% in the first quarter, less than the 5.4% analysts expected. Statistics Canada says exports fell 9.4%, driven by a drop in oil and gas production. Otherwise, the economy remained strong, with domestic demand rising to 4.8% as people opened up their wallets, especially to buy homes. Renovations, resale costs, and new construction rose. It’s a good thing Canadians had more money to spend, with wages up 3.8% for the largest quarterly gain since 1981. Canada’s 3.1% growth in GDP in Q1 was 2% below consensus, but March ended a little stronger than what economists predicted. Still, the slowdown phase is underway and should lead to lower inflation in the second half of the year. #PyleGroup Canada’s GDP in Q1 2022 grew 3.1% as business investment and household consumption continued to boom while energy exports dragged. Employee compensation grew 3.8%, up from 2.0% in Q4 2021. While good news for workers, this reflects rapidly rising long-run inflation expectations. As a result, the GDP data should not alter the Bank of Canada’s rate decision tomorrow because domestic demand remains solid, unemployment is still at historic low, and inflation is running red hot. The upcoming months will continue […]
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