Canadian GDP Figures for February Released

Statistics Canada said today that Canada's GDP grew by 1.1% in February. This is higher than the 0.8% growth anticipated in their February flash estimate, and points to a 1.4% increase for Q1 GDP over Q4, indicating an annualized rate of 5.7%. This will do nothing to cool the Bank of Canada's intention to continue hiking interest rates this year - Bank Chair Tiff Macklem has already suggested they will increase the overnight rate by as much as another 75 basis points (to 1.75%) at their Board of Governors' June 1 meeting. Canada's estimated Q1 growth of 1.4% contrasts with the US's contraction of 1.4% (annualized). Non-residential construction increased by 1.4% in February, although most of the gain was in alterations and improvements. You can read the full report here.