Canada's economy growing at slow, steady pace
Posted: Jun 1, 2012 8:44 AM ET
Last Updated: Jun 1, 2012 11:22 AM ET
Canada's gross national product grew at a 1.9 per cent annual pace in the first three months of the year, the same pace seen at the end of 2011.
Statistics Canada said that in real terms, the total value of the economy grew by 0.5 per cent in the January to March period. Annualized, that means the economy is on track to grow by 1.9 per cent this year as a whole.
That annualized figure is the same pace of expansion as in the United States.
The 1.9 per cent pace of growth was in line with what economists were expecting, but there were some good and and bad surprises buried within the data.
Government spending fell by 2.1 per cent in the quarter and consumer spending downshifted from a 2.8 per cent increase the previous quarter to a 0.9 per cent increase in the first three months of 2012.
"The domestic economy cooled in the quarter, with final domestic demand up just 1.3 per cent, the slowest pace since [the second quarter of 2009]," BMO economist Robert Kavcic noted.
On the positive side of the ledger, strong homebuilding activity in parts of the country supported growth overall, with residential investment growing by 12.3 per cent.
"[This] result doesn’t provide a great handoff to the second quarter, and suffice it to say that we’re not holding our breath for a strong pickup," Kavcic said.
Top News Headlines
- Obesity now recognized as a disease
- The American Medical Association has voted to recognize obesity as a disease, while doctors in Canada say they also treat it as such. more »
- Neil Macdonald: Washington's obsession with leakers
- Julian Assange and Edward Snowden are just the most prominent targets in an all-out legal and propaganda campaign that America's security apparatus is mounting against leakers everywhere, Neil Macdonald writes. more »
- Caregiving dads stigmatized at work suggests UofT study
- Fathers who participate in child rearing and housework are likely to be labeled slackers and "failed men" at work, according to a study spearheaded by researchers at the University of Toronto and Long Island University. Are active dads the norm at your workplace? more »
- Dozens of children seized from Manitoba Mennonite community
- Child welfare authorities have removed all but one child from a small Mennonite community in rural Manitoba. more »
Latest Business Headlines
- Orascom withdraws bid for control of Wind Mobile
- Orascom Telecom Holding has announced it is pulling back its bid to buy out Wind Mobile Canada founder and CEO Anthony Lacavera and acquire full control of the company, in which it already holds a 65 per cent interest. more »
- Poloz urges 'stability and patience' in 1st public speech
- In his first public remarks since being named governor of the Bank of Canada, Stephen Poloz said the central bank will keep its focus trained squarely on keeping inflation in check. more »
- World's wealthy richer than ever
- The investable wealth of the world's richest people reached a record high of $46.2 trillion US in 2012, a report by RBC Wealth Management and the consulting firm Capgemini has found. more »
- Loblaw testing small discount-store format in Calgary
- Loblaw Cos. Ltd., Canada's largest grocer, is trying out a new discount small-store format in Calgary in a bid to attract more customers in urban areas. more »
Lang & O'Leary Exchange
The data on this site is informational only and may be delayed; it is not intended as trading or investment advice and you should not rely on it as such.
- Bob Rae quits as MP in 'very emotional' decision
- Wearing a mask at a riot is now a crime
- 2 men jailed in Dominican wedding fight back in Canada
- B.C. teacher duct-taped students' mouths
- Obesity now recognized as a disease
- Half of First Nations children live in poverty
- Huge ancient city at Angkor Wat revealed by lasers
- Are e-cigarettes safe to puff?
- How open is Ottawa's new 'open data' website?