Canada's Economy Posts Surprise Annualized Fourth Quarter Growth of 2.6%
Canada's gross domestic product in the fourth quarter expanded by 2.6% on an annualized basis, surpassing widespread expectations, as a jump in consumer spending, business investments and exports lifted growth, data showed on Friday. Analysts polled by Reuters had expected the GDP to grow by 1.8% in annualized terms in the quarter ending December, similar to Bank of Canada's predictions from last month. The third quarter growth rate was revised to 2.2% from 1% earlier, Statistics Canada said.
- The surprise growth in Canada's economy suggests that the country is poised for a stronger economic recovery than initially anticipated, driven by increased consumer spending and business investments.
- How will this unexpected rebound in economic growth impact the Bank of Canada's monetary policy decisions, particularly in light of the looming threat of sweeping U.S. tariffs on Canadian exports?