Statistics Canada reported that by the end of the first quarter, the economy expanded at the fastest pace in more than a year, supported by improving exports and consumer spending. But the result has not justified expectations of experts and strengthened the speculation that weakness in the second quarter, as the country continues to experience difficulties due to lower commodity prices.
According to the report, gross domestic product in Canada grew in the 1st quarter to 2.4% year-on-year to 1.78 trillion. canadian dollars. This change followed a 0.5 percent increase in GDP in the 4th quarter, which was revised from +0.8%. However, the latest pace of growth was below the consensus forecast at +2.9 percent. For comparison, during the first quarter of this year, the US economy expanded by 0.8% and the Eurozone GDP grew by 2.1%.
The data also showed that by the end of March, the canadian economy contracted by 0.2% compared to expectations for a decline of 0.1%. We will remind, in February, GDP decreased by 0.1%. The weakness in the commodity sector was the driving force behind the fall of GDP in March, which was the second in a row and the largest since January of this year.
Meanwhile, the statistical office has revised downward the economic growth for the entire 2015 – to 1.1% from previous estimate of +1.2%.