Q1 GDP, March GDP and Flash Forecast for April Reported by StatsCan

Statistics Canada reported that Q1 2022 GDP came in at an annualized rate of 3.1% - substantially lower than the 5.7% indicated last month (see article below) due to a drop in international export volumes. Business investment in non-residential structures was up 2.9% compared to Q4 2021. The report is available here. Meanwhile, March GDP posted a 0.7% increase in March compared to February. StatsCan also revised their February figure to 0.9% (down from 1.1% - see below). For the month, non-residential building construction rose 0.9%; while all subsectors posted increases, commercial construction contributed most to the increase, partly due to a retail development in Mount Royal, QC. April's flash forecast is for a 0.2% increase compared to March. Construction activity is expected to be down in the month, but the report does not break the decrease down between residential and non-residential. The March report is available here. The Bank of Canada (BoC) is still expected to increase its benchmark interest rate tomorrow by another 50 basis points; BoC Chair Tiff Macklem has already poured cold water on the idea of a larger increase in June, but most pundits expect that other rate increases are in the cards this year as the Bank tries to cool down inflation without driving the economy into recession.