The Canadian economy got off to a slow start to begin 2012, failing to build on momentum from December. January Gross Domestic Product grew just 0.1 per cent, after posting robust 0.5 per cent growth in the final month 2011. Economic growth in January was given a boost by manufacturing output which rose for the fifth consecutive month, but was dragged lower by declining oil and gas extraction. On a year-over-year basis, real GDP growth was 1.7 per cent in January.
The Canadian economy grew 1.8 per cent in the fourth quarter of 2011 and today's data, along with incoming economic statistics, seems to point to similarly modest growth in the first quarter of 2011. We anticipate that the Canadian economy will grow just over 2 per cent in 2012.
Copyright British Columbia Real Estate Association. Reprinted with permission.