The Statistics Canada said on Friday that nearly three-quarters of the sectors it monitored showed an increase in production. Preliminary data for March suggest that Canada’s gross domestic product grew by another 0.5%, the data service said. The services sector, which was surrounded by a series of lockdowns related to the appearance of Omicron in December and January, recovered in February with a 0.9% expansion. The accommodation and food services sector increased by 15.1%. The arts, entertainment and leisure sectors grew 8.4 percent month-on-month, while rail rose 9.1 percent and air rose 7.7 percent. The goods production industries also took action, which expanded even more from the services sector, recording an increase of 1.5% during the month. The mining, quarrying, oil and gas sector grew by 3.4%.
Exceeding expectations
From the lows in January, economists expected the economy to grow by about 0.8%, but GDP grew above those expectations. The January, February and March data table put the economy on a growth trajectory of 5.6% in the first quarter, almost double the Bank of Canada’s 3 percent growth, Desjardins economist said. Royce Mendes. The numbers make it even more likely that interest rates from the central bank will rise to ease things, he said. “The Bank of Canada set the table for a 50-point increase in June, but data like this will have market pricing at least some chance that central bankers need to move more aggressively,” Mendes said. CLOCKS Why inflation has soared to its highest level in 30 years:
Canada’s inflation jumped to 6.7% for the biggest jump since 1991
Inflation in Canada jumped to 6.7 percent in March, reaching a 31-year high. Economists warn that borrowers should expect further interest rate hikes as the Bank of Canada tries to curb rising inflation. 2:00 p.m.
