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Canada’s economy grows 0.5% in January

By Brad Perry Mar 31, 2023 | 12:11 PM

Canada’s economy expanded in January following a slight contraction a month earlier.

Statistics Canada said Friday that the country’s real GDP rose 0.5 per cent in January.

That followed a slight 0.1 per cent contraction the economy recorded in December.

StatCan said both goods-producing and services-producing (+0.6%) industries were up, as 17 of 20 sectors posted increases.

Many of the main growth drivers in January were also the largest contributors to the December decline, it said.

“In January, the wholesale trade, transportation and warehousing, and mining, quarrying and oil and gas extraction sectors all rebounded from declines recorded in the previous month,” the agency said in its monthly report.

Wholesale trade rose 1.8 per cent in January, more than offsetting declines observed in the previous two months.

StatCan said wholesalers of machinery, equipment, and supplies, specifically construction and industrial equipment, drove the increase.

Mining, quarrying and oil and gas extraction expanded 1.1 per cent in January after a 3.3 per cent decline the month before.

Transportation and warehousing rebounded 1.9 per cent in January, more than offsetting a 1.1 per cent drop in December.

Activity in accommodation and food services was also among the top contributors to growth after remaining relatively flat in the second half of 2022.

The the sector rose four per cent in January, with increased activity in the food services and drinking places subsector contributing significantly to the growth.

Early data from StatCan suggests real GDP increased 0.3 per cent for the month of February.

“Increases in the mining, quarrying, and oil and gas extraction, manufacturing, and finance and insurance sectors were slightly offset by decreases in construction, wholesale trade, and accommodation and food services,” said the report.

Official GDP data for the month will be released on April 28. The full January report can be viewed by clicking here.


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