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Economy Grew Slightly In November: StatCan

By Brad Perry Jan 31, 2023 | 12:25 PM

Canada’s economy saw slight growth again in November, according to new figures from Statistics Canada.

Real GDP grew 0.1 per cent, similar to what the nation’s economy saw in the previous five months.

Growth in services-producing industries was partially offset by a decline in goods-producing industries, the agency said Tuesday.

StatCan said the removal of COVID travel restrictions and rising interest rates continue to affect certain industries.

On Oct. 1, all COVID-19 border restrictions were removed for all travellers entering Canada by land, air or sea.

“This removal of restrictions continued to support gains in the transportation and warehousing sector in November,” the agency said in its monthly report.

Transportation and warehousing rose one per cent in November, marking the third consecutive monthly gain.

Air transportation rose sharply as the subsector rose to its highest level of activity since January 2020’s pre-pandemic level.

Construction contracted 0.7 per cent in November, with residential building construction being the main driver behind the decrease.

“All types of residential activity fell in November, with new construction of single detached homes and home alterations and improvement leading the contraction,” said StatCan.

Retail trade declined 0.6 per cent, with the most notable declines at food and beverages stores, building material and garden equipment and supplies dealers, as well as general merchandise stores.

StatCan said the food and beverage stores subsector fell to its lowest level since April 2018.

“Broad-based declines were observed across all four store types in the subsector, with beer, wine and liquor stores contributing the most to the decline,” said its report.

The accommodation and food services sector contracted 1.4 per cent following three consecutive monthly increases.

The public sector increased for the seventh consecutive month in November, up 0.3 per cent. StatCan said the increase was, in part, due to continued high demand for health care services.

Meanwhile, preliminary estimates suggested the Canadian economy remained virtually flat in December. That would put overall economic growth for 2022 at an estimated 3.8 per cent.

StatCan said these estimates will be updated in late February with the release of the official GDP data for December.

You can view the full report on Statistics Canada website.


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