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© Reuters. FILE PHOTO: The downtown skyline and CN Tower are seen previous the jap waterfront space within the Port Lands district of Toronto, Ontario, Canada April 3, 2019. REUTERS/Chris Helgren
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By Julie Gordon and Ismail Shakil
OTTAWA (Reuters) -The Canadian economic system largely probably began 2022 on robust footing, regardless of the impression of the Omicron variant and protests that shut down key border crossings, whereas fourth quarter development got here in above expectations, official information confirmed on Tuesday.
Canada’s economic system grew 6.7% within the fourth quarter on an annualized foundation, beating analyst expectations of 6.5%, whereas January GDP most probably rose 0.2% after stagnating in December, Statistics Canada information confirmed.
With January’s achieve, which is a preliminary estimate, financial exercise is now 0.6% above pre-pandemic ranges, Statscan stated.
“Whereas the clouds darkened a bit earlier than the tip of the 12 months … GDP posted a stunning 0.2% advance in January regardless of the Omicron wave and the entire related job losses,” stated Royce Mendes, head of macro methods at Desjardins Group.
“The economic system probably constructed on that momentum in February, as the most recent COVID wave turned a nook which allowed for extra reopenings throughout the nation,” he added.
The robust fourth quarter print got here in above the Financial institution of Canada’s personal January forecast of a fourth quarter achieve of 5.8%. The central financial institution is broadly anticipated to boost its key rate of interest to 0.50% when its meets on Wednesday.
“I do not suppose the year-end numbers change the image a lot for the Financial institution apart from to drive dwelling the purpose that the economic system was nonetheless managing to grind forward even within the face of Omicron,” stated Doug Porter, chief economist at BMO Capital Markets.
The Canadian greenback was buying and selling 0.1% greater at 1.2665 to the buck, or 78.96 U.S. cents.
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