Economic News and Forecasts
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Bank of Canada Holds the Line on Interest Rates
Mar 10, 2021 | Economic News and ForecastsThe Bank of Canada announced today it is keeping interest rates at the effective lower bound of 0.25% despite the improved GDP in Q4 2020. The tone of the announcement remained somewhat dovish: "While economic prospects have improved, the Governing Council judges that the recovery continues...
Statistics Canada Releases Q4 2020 and Calendar 2020 GDP
Mar 4, 2021 | Economic News and ForecastsYesterday, Statistics Canada released GDP figures for Q4, along with GDP for the full year. In Q4, GDP grew 2.3% (an annualized rate of 9.5%) while, for the year, it fell an unprecedented 5.4%. Non-residential construction fell 10.9% in the quarter, reflecting weak demand for office buildings...
2021 DHI-C Economic Forecast
Dec 16, 2020 | Economic News and ForecastsDHI Canada today has released our 2021 economic analysis and forecast. We're predicting a few bumps in the road yet as we move into recovery after the pandemic-related recession earlier this year. A slightly abbreviated version of this forecast will appear in the January 2021 issue...
Q3 2020 GDP Released
Dec 1, 2020 | Economic News and ForecastsStatistics Canada released the 2020 third quarter GDP. The economy grew 8.9% in real terms in Q3 compared to Q2; this is an annualized rate of 40.6% Growth is less than anticipated (StatsCan's flash estimate for Q3 was about 46%), but was still a record-breaking level...
Summary of Bank of Canada's Monetary Policy Report, October 2020
Nov 2, 2020 | Economic News and ForecastsThe Bank of Canada (BoC) issues a quarterly Monetary Policy Report (MPR), which we use as one of the inputs to our Economic Forecasts. In the April and July MPR, the Bank departed from its practice of including definitive economic forecasts, but returned to it in the October issue...
StatsCan Releases August GDP; Q3 Flash Estimate
Oct 30, 2020 | Economic News and ForecastsStatistics Canada today released August GDP figures, showing the economy grew 1.2% month over month - a much slower pace than the 3.1% revised growth in July. The news was not so rosy for non-residential construction, which contracted a further 1.7%, with all components...
Bank of Canada Rate Still Holding at 0.25%
Oct 28, 2020 | Economic News and ForecastsThe Bank of Canada today confirmed it is holding the overnight rate at the effective lower bound of 0.25%. In its release, the Bank indicated it would continue to maintain this rate until its target inflation rate of 2.0% is "sustainably achieved"; they estimate this will not happen...
July GDP Figures Released
Sep 30, 2020 | Economic News and ForecastsStatistics Canada released the July GDP figures today. With month-over-month growth of 3%, GDP growth is slowing down. This is the thrid consecutive monthly increase in GDP, but it still leaves the economy 6% below February's pre-COVID levels. Construction activity was up by 0.6%...
Canadian Bank Rate Remains Unchanged at 0.25%
Sep 10, 2020 | Economic News and ForecastsTo no one's surprise, the Bank of Canada announced yesterday it was maintaining the bank rate at the effective lower bound of 0.25%. In the press release, the Bank noted that recovery in the third quarter will probably be stronger than predicted in their July Monetary Policy Report...
Construction Investment and Building Permit Activity
Sep 3, 2020 | Economic News and ForecastsLast week, Statistics Canada released information on investment in construction (for June 2020) and building permit activity (for July 2020). While non-residential construction in June exceeds pre-COVID levels and is actually running ahead of June 2019, there is no corresponding recovery...