OTTAWA: The Canadian real gross domestic product (GDP) grew 0.2 per cent in January, up for the eighth month in a row, and is expected to see a 0.8 per cent surge in February, Statistics Canada revealed.
Overall, nine of 20 industrial sectors increased in January, Xinhua news agency quoted Statistics Canada as saying.
Goods-producing industries increased 0.8 per cent while the effects of the Omicron variant continued to take the wind out of the sails of services-producing industries (0.0 per cent), with specific client-facing industries feeling direct impacts, it added.
Advance information has indicated an approximate 0.8 per cent expansion in real GDP in February, Statistics Canada estimated, saying that notable increases were observed in the manufacturing sector as well as in mining, quarrying, oil and gas extraction, accommodation and food services, and construction.
CIBC economist Andrew Grantham said in his report that the Canadian economy certainly faired much better in the first quarter than previously expected.
"As a result, we will be raising our forecast to around 4 percent annualized for the quarter. However, the impact of high inflation on household finances, potential supply chain issues in manufacturing and higher interest rates finally slowing the housing market, will mean that growth throughout the remainder of the year is slower than we had initially assumed, " Andrew said.
In terms of interest rates, the strong start to the year provided justification not just for further hikes, but potentially a 50-basis point move in April, he added.