The Canadian economy advanced 0.1 quarter-on-quarter in the first quarter of 2019, the same growth rate as the fourth quarter of 2018 which is the lowest since Q2 2016. The expansion was driven by household spending and fixed investment but moderated by declines in exports and housing investment. Expressed at an annualized rate, real GDP increased 0.4 percent in the first quarter, above a downwardly revised 0.3 percent growth in the previous period but below market expectations of 0.7 percent. GDP Growth Rate in Canada averaged 0.78 percent from 1961 until 2019, reaching an all time high of 3.10 percent in the fourth quarter of 1963 and a record low of -2.30 percent in the first quarter of 2009.

GDP Growth Rate in Canada is expected to be 0.60 percent by the end of this quarter, according to Trading Economics global macro models and analysts expectations. Looking forward, we estimate GDP Growth Rate in Canada to stand at 0.40 in 12 months time. In the long-term, the Canada GDP Growth Rate is projected to trend around 0.60 percent in 2020, according to our econometric models.

Canada GDP Growth Rate
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Calendar GMT Actual Previous Consensus TEForecast
2018-08-30 12:30 PM GDP Growth Rate QoQ Q2 0.7% 0.4% 0.6%
2018-11-30 01:30 PM GDP Growth Rate QoQ Q3 0.5% 0.7% 0.3%
2019-03-01 01:30 PM GDP Growth Rate QoQ Q4 0.1% 0.5% 0.4%
2019-05-31 12:30 PM GDP Growth Rate QoQ Q1 0.1% 0.1% 0.5%
2019-08-30 12:30 PM GDP Growth Rate QoQ Q2 0.1% 0.4%
2019-11-29 01:30 PM GDP Growth Rate QoQ Q3 0.2%



Canada GDP Growth Remains Steady at 0.1% in Q1

The Canadian economy advanced 0.1 quarter-on-quarter in the first quarter of 2019, the same growth rate as the fourth quarter of 2018 which is the lowest since Q2 2016. The expansion was driven by household spending and fixed investment but moderated by declines in exports and housing investment. Expressed at an annualized rate, real GDP increased 0.4 percent in the first quarter, above a downwardly revised 0.3 percent growth in the previous period but below market expectations of 0.7 percent.

Household spending grew at a faster 0.9 percent in the first quarter of 2019, after increasing 0.2 percent in the previous quarter, amid broad based gains. Outlays on durable goods rebounded 1.2 percent in the first quarter, following a 0.5 percent decline in the fourth quarter of 2018. Vehicle purchases increased 0.9 percent, following a 0.8 percent decline. Similarly, household spending on audio-visual and information processing equipment rose 3.1 percent, following a 0.9 percent drop. Outlays on services rose 0.8 percent, led by life insurance and financial services (+2.1 percent).

Gross fixed capital formation rose 1.0 percent, rebounding from a 2.3 percent decline in the previous period. Overall business investment in non-residential structures and machinery and equipment rebounded 3.2 percent in the first quarter, following a 2.5 percent decline in the previous quarter. The strength was mainly attributable to an 8.7 percent rise in machinery and equipment investment, with increases in eight of the nine sub-categories. Significant investment was recorded in aircraft and other transportation equipment, corresponding to strong imports. Business investment in non-residential buildings rebounded 2.3 percent, following a decline of a similar magnitude in the fourth quarter of 2018. The increases in machinery and equipment and non-residential buildings were partly offset by declines in investment in engineering structures (-1.7 percent).

Housing investment fell 1.6 percent in the first quarter, the fifth consecutive quarterly contraction. Declines in new home construction (-3.6 percent) and ownership transfer costs (-3.2 percent) were slightly offset by increased renovation activity (+1.8 percent). 

Exports declined 1.0 percent, the first decrease since the third quarter of 2017. A 0.9 percent rise in services exports moderated a 1.5 percent drop in goods exports. There were substantial volume declines in exports of farm and fishing products (-9.5 percent), and crude oil and crude bitumen (-2.8 percent). Exports of commercial services rose 1.3 percent, after a 1.6 percent increase in the fourth quarter of 2018.

Imports rose 1.9 percent in the first quarter, following a 0.2 percent drop in the fourth quarter. Aircraft, aircraft engines and aircraft parts (+38.6 percent), passenger cars and light trucks (+10.4 percent) and pharmaceuticals and medicinal products (+9.6 percent) were the main contributors to the increase. Imports of energy products were down 5.4 percent, largely because of lower crude oil and crude bitumen imports.



Statistics Canada | Luisa Carvalho | luisa.carvalho@tradingeconomics.com
5/31/2019 1:13:10 PM



Canada GDP Last Previous Highest Lowest Unit
GDP Growth Rate 0.10 0.10 3.10 -2.30 percent [+]
GDP Annual Growth Rate 1.30 1.60 9.30 -4.10 percent [+]
GDP Growth Annualized 0.40 0.30 12.60 -9.10 percent [+]
GDP 1709.30 1646.90 1842.02 40.77 USD Billion [+]
GDP Constant Prices 2065958.00 2063887.00 2065958.00 343571.00 CAD Million [+]
Gross National Product 2220740.00 2192664.00 2220740.00 39924.00 CAD Million [+]
Gross Fixed Capital Formation 431706.00 427409.00 473052.00 57964.00 CAD Million [+]
GDP per capita 51357.80 51126.20 51357.80 17665.10 USD [+]
GDP per capita PPP 44051.05 43852.42 44051.05 30264.47 USD [+]
GDP From Agriculture 40309.00 40441.00 40587.00 23668.00 CAD Million [+]
GDP From Construction 136840.00 136612.00 147533.00 71290.00 CAD Million [+]
GDP From Manufacturing 203262.00 204940.00 218407.00 162048.00 CAD Million [+]
GDP From Mining 152417.00 145795.00 154772.00 99564.00 CAD Million [+]
GDP From Public Administration 131191.00 131032.00 131191.00 82547.00 CAD Million [+]
GDP From Services 1383334.00 1380606.00 1383334.00 753366.00 CAD Million [+]
GDP From Transport 88254.00 88321.00 88737.00 51402.00 CAD Million [+]
GDP From Utilities 42863.00 43207.00 43892.00 31420.00 CAD Million [+]


Canada GDP Growth Rate

Canada's economy is diversified and highly developed. Foreign trade is responsible for about 45 percent of the nation's GDP and the United States is by far the largest trade partner. On the expenditure side, household consumption is the main component of GDP and accounts for 58 percent of its total use, followed by gross fixed capital formation (22 percent) and government expenditure (19 percent). Exports of goods and services account for 32 percent of GDP while imports account for 33 percent, subtracting 1 percent of total GDP. Non-profit institutions serving households' final consumption expenditure and investment in inventories account for the remaining 2 percent. This page provides - Canada GDP Growth Rate - actual values, historical data, forecast, chart, statistics, economic calendar and news. Canada GDP Growth Rate - actual data, historical chart and calendar of releases - was last updated on July of 2019.

Actual Previous Highest Lowest Dates Unit Frequency
0.10 0.10 3.10 -2.30 1961 - 2019 percent Quarterly




Country Last Previous
United States 3.10 Mar/19
China 1.60 Jun/19
India 1.60 Dec/18
Turkey 1.30 Mar/19
Saudi Arabia 1.07 Dec/18
Spain 0.70 Mar/19
Japan 0.60 Mar/19
Switzerland 0.60 Mar/19
Netherlands 0.50 Mar/19
United Kingdom 0.50 Mar/19
Australia 0.40 Mar/19
Euro Area 0.40 Mar/19
Germany 0.40 Mar/19
France 0.30 Mar/19
Canada 0.10 Mar/19
Italy 0.10 Mar/19
Argentina -0.20 Mar/19
Brazil -0.20 Mar/19
Mexico -0.20 Mar/19
Russia -0.40 Mar/19
South Korea -0.40 Mar/19
Indonesia -0.52 Mar/19
South Africa -3.20 Mar/19
Singapore -3.40 Jun/19


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