Q4 and Full Year 2021 GDP Numbers Are In, And They Look Pretty Good!

Statistics Canada today released Q4 and full year GDP results. StatsCan reports the economy grew 1.6% in Q4, an annualized rate of 6.4%, and that growth for the full year was 4.8%. Growth for the quarter was above the 5.8% the Bank of Canada estimated in its January Monetary Policy Report. Growth for the year was slightly above the 4.3% we forecast in our November 2021 update. Investment in non-residential structures, machinery and equipment was up by 2.1% in Q4. The full report is available through StatsCan.

This relatively strong GDP performance, combined with higher rates of inflation, virtually assures the Bank of Canada will raise its benchmark rate at Wednesday's meeting.