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What’s GDP?
Gross home product (GDP) is a statistic economists use to measure the overall quantity of products and providers produced in a rustic throughout a selected time interval, normally 1 / 4 or a 12 months. This quantity is calculated in one among 3 ways.
Learn the total definition within the MoneySense Glossary: What’s GDP?
The place the GDP goes in Canada
The company added that it anticipated the expansion continued in February with a preliminary estimate pointing to a achieve of 0.4% for the month, helped by energy within the mining, quarrying, and oil and fuel extraction, manufacturing, and finance and insurance coverage sectors.
CIBC senior economist Andrew Grantham mentioned the Canadian financial system seems to have began 2024 within the quick lane. “Despite the fact that January’s development was flattered by a rebound within the public sector following strike exercise in Quebec, strong momentum seems to have prolonged to February as nicely,” he wrote in a word to shoppers.
Grantham added that with development for the primary quarter as a complete monitoring nicely above the Financial institution of Canada’s earlier expectation, there is no such thing as a urgency for the central financial institution to chop rates of interest at its April assembly.
“Nevertheless, a June transfer remains to be attainable if labour market circumstances proceed to loosen and core inflation maintains its downward momentum,” he mentioned.
The Financial institution of Canada’s key rate of interest is ready at 5%. The central financial institution is anticipating to have the ability to start reducing rates of interest someday later this 12 months, however in response to its most up-to-date abstract of deliberations, its officers are cut up on timing. (Learn “Making sense of the Financial institution of Canada rate of interest choice on March 6, 2024.”)
The present inflation fee
Yr-over-year inflation got here in at 2.8% in February, however the central financial institution stays involved that inflation dangers trending greater than anticipated, notably as shelter prices proceed to climb.
Rising sectors in Canada
Statistics Canada mentioned that the expansion within the financial system in January got here as the general public sector, which incorporates academic providers, well being care and social help and public administration, rose 1.9% after two consecutive month-to-month declines.
The academic providers sector gained 6.0% after falling in November and December as a result of strikes in Quebec, whereas the well being care and social help sector, which was additionally impacted by the strikes, rose 0.8%.
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