Thursday, October 23, 2025

Latest

Swing and Miss: Canada’s GDP Falls Short of Expectations as Exports Plummet

Canada’s economy fell short of forecasts last quarter, as exports slumped amid continued supply constraints.

Latest data from Statistics Canada shows that GDP output grew by only 3.1% in the first quarter, substantially below forecasts calling for a 5.2% increase, and even weaker than the statistics agency’s preliminary data. In fact, the 0.8% quarterly increase did little to reach the 6.6% annualized gain reported in the first three months of 2021.

The drop in output was primarily due to a decline in export volumes which fell 2.4% from the final three months of 2021, marking an annualized decline of 9.4%. A number of setbacks in the trade of energy products contributed to the slump, with both exports and imports falling by 2.4% and 0.7%, respectively.

On the other hand, though, domestic demand grew 4.8% from the same quarter a year ago, up from the 3.7% increase reported in the fourth quarter of last year. Contributing to the gain was a strong rebound in housing investment and household consumption, with employee compensation rising 3.8%— the second largest quarterly gain since 1981.

Although last quarter’s economic expansion fell short of expectations, policy makers at the Bank of Canada are likely not going to divert their hawkish path towards higher interest rates. Markets are pricing in a 50 basis point increase come Wednesday, bringing borrowing costs to 1.5%.


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.

Video Articles

When 4% of Global Copper Disappears Overnight | David Gower – Emerita Resources

Mining M&A: Gold X2 Acquires Kesselrun Resources

They Said Oil Was Dead. They Were Wrong. | Michael Judson – Record Resources

Recommended

Steadright Enters MOU To Acquire Historic Goundafa Polymetallic Mine In Morocco

Military Seizes Power in Madagascar After President Flees

Related News

Bank of Canada Pauses Rate Hikes

As was forecasted by economists, Bank of Canada Governor Tiff Macklem decided to keep the...

Wednesday, September 6, 2023, 10:01:21 AM

Jerome Powell Hikes Rates 75 Basis Points, Doesn’t Believe Economy Is In A Recession

The Federal Reserve on Wednesday delivered on a much-anticipated 75 basis-point rate hike, whilst acknowledging...

Wednesday, July 27, 2022, 04:58:00 PM

US CPI Explodes Past Expectations, Lays Case for Massive Fed Rate Hike

Just when the myopic Fed was preparing to declare victory over the hottest inflation in...

Tuesday, September 13, 2022, 10:17:40 AM

Bank of Canada Expected to Raise Rates Again in a Bid to Tackle Inflation

The Bank of Canada is set to increase interest rates this week, indicating its commitment...

Monday, July 10, 2023, 08:16:55 AM

Canadian CPI Slows to 7.6% in July… But Only Because of Lower Gasoline Prices

Hurrah! Canadians are finally getting a break from surging consumer prices, as the latest CPI...

Tuesday, August 16, 2022, 11:26:15 AM