Canada’s GDP showed signs of slowing down at the end of 2021, as a new round of lockdowns in face of the Omicron variant took a toll on economic output.
According to data from Statistics Canada, the month of November saw real GDP rise 0.6%, following an increase of 0.8% in the month prior. Both goods-producing and services-producing industries noted increases, with 17 of the 20 industrial sectors noting an advance in output. November’s gain brings the economy 0.2% above the February 2020 level, prior to the onset of the pandemic.
Advanced data from the statistics agency indicates that output in December remained relatively unchanged, suggesting that the new round of pubic health lockdowns in response to the Omicron variant may have modestly slowed down Canada’s economy in the final month of 2021. With respect to early estimates for the fourth quarter, GDP was up 1.6%, giving rise to an annual rebound of 4.9% last year compared to the beginning of the pandemic in 2020.
However, December’s slowdown was likely not enough to hinder the year’s overall robust growth, further giving rise to expectations that the Bank of Canada will begin raising interest rates throughout 2022.
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.