Yahoo Finance Canada's economy grows for eighth month in a row
Canada's economy grew in January, despite Omicron-related public health restrictions.
Statistics Canada says GDP grew 0.2 per cent in January, in line with estimates and the eighth straight month of growth.
Construction expanded 2.8 per cent, while residential construction expanded 4.1 per cent for the largest gain since March 2021. Growth was broad-based with renovations and apartment building construction leading the way.
Wholesale trade had its best month since July 2020, up 3.1 per cent.
Unseasonably cold weather in Western Canada pushed utilities up 4 per cent, the largest monthly growth rate since January 2016.
Omicron's economic bite
But it was a different story for client-facing industries, which struggled with Omicron-related public health restrictions.
Accommodation and food services were down 11.5 per cent, the largest decline since April 2020. Restaurants and bars declined 10.2 per cent. Accommodation services fell 14.7 per cent.
An early estimate points to 0.8 per cent growth in February.
Further down the line CIBC senior economist Andrew Grantham expects growth to slow.
“The impact of high inflation on household finances, potential supply chain issues in manufacturing stemming from Russia/Ukraine and China, and higher interest rates finally slowing the housing market, will also mean that growth throughout the remainder of the year is slower than we had assumed at the start of 2022,” said Grantham.
Jessy Bains is a senior reporter at Yahoo Finance Canada. Follow him on Twitter @jessysbains.
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