Canada’s Economy Reaches Pre-Pandemic Levels for First Time Ever In November
Canada’s economy continued to expand throughout October and November, and has finally reached pre-pandemic levels for the first time since the beginning of the crisis.
According to Statistics Canada, GDP rose 0.8% in October, with broad increases being noted across 17 of the 20 industrial sectors. Industries focused on producing goods rose 1.6%, while services-producing sectors were up 0.6%.
Following what were four consecutive declines, Canada’s construction sector expanded 1.6%, as all forms of construction activity increased. Mining, quarrying, and oil and gas extraction rose 1.5%, marking the sixth consecutive month of gains with robust global demand, rising energy prices, and planned maintenance at oil sands operations all contributing to the increase.
The retail trade sector expanded 1% in October, with 8 of the 2 subsectors all noting gains. The arts, entertainment and recreation sector increased 7.1%, as Covid-19 restrictions related to large gatherings continued to ease. In the meantime, the accommodation and food sector slumped 0.5%.
October’s gains continued well into November, with the statistics agency reporting that output rose another 0.3%, marking the sixth straight month of gains for Canada’s economy. Last month’s increase brings monthly GDP to pre-pandemic levels for the first time since the beginning of the Covid-19 crisis, further reinforcing expectations that the Bank of Canada will embark on several rate hikes over the next 12 months.
Information for this briefing was found via Statistics Canada. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.