Increases in mining, quarrying, and oil and gas extraction, wholesale trade, professional, scientific and technical services, and transportation and warehousing sectors were slightly offset by decreases in construction and retail trade
Canada’s economy showed signs of growth in January as the country’s real gross domestic product (GDP) by industry increased 0.3 per cent. According to the national statistical agency, Statistics Canada, the increase was largely driven by growth in the mining, quarrying, and oil and gas extraction, wholesale trade, professional, scientific and technical services, and transportation and warehousing sectors. However, this was offset by decreases in the construction and retail trade sectors.
This growth comes after a decline in December 2022, where real GDP by industry edged down 0.1 per cent, following a 0.1 per cent uptick in November. Goods-producing industries declined, while service-producing industries remained essentially unchanged, according to Statistics Canada.
Despite the fluctuations in recent months, the Canadian economy has grown in 2022, with the annual economic activity exceeding its 2019 pre-pandemic level. The GDP growth in 2022 was updated to 3.6 per cent, down from the previous estimate of 3.8 per cent. While the removal of Covid-related restrictions and favourable farming conditions have supported growth, the country’s economic activity was impacted by supply-chain issues and semiconductor shortages.
Overall, the Canadian economy has shown resilience despite the challenges faced due to the pandemic. The country’s services-producing industries rose 0.5 per cent in the fourth quarter of 2022, up for a sixth consecutive quarter, while goods-producing industries contracted 0.6 per cent in the same period. This deceleration in growth for a second straight quarter, with a 0.2 per cent uptick in the fourth quarter, was the slowest pace of growth since the second quarter of 2021.
The interest rate hike has also had an impact on the economy. However, despite this, Canada’s economy remains relatively stable and has shown promising growth, especially in the service industry. The outlook for the Canadian economy for 2023 remains positive, with several factors contributing to its growth. However, it remains to be seen how the country will fare in the face of new challenges that may arise in the future.