According to a Bloomberg article, the Canadian economy started off strong in the second quarter, with preliminary data suggesting that gross domestic product rose 0.2% in April. Growth was led by mining, oil and gas, transportation, and real estate. That followed a flat reading in the previous month. Overall, the economy in the first quarter expanded at a 3.1% annualized pace, stronger than a consensus estimate of 2.5% and the Bank of Canada’s forecast of 2.3%. Household spending and strong exports, spurred growth. Most economists expect the country will now achieve a “soft landing,” and a monthly survey by Bloomberg shows analysts no longer expect a technical recession in the middle of this year. As a result of the strength of the economy so far this year, the Bank of Canada moved interest rates up by 25 basis points earlier this month for a total increase so far of 450 basis points.
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