Canadian economy expands in January

Canada’s gross domestic product grew half a per cent in January, driven by the strength of the manufacturing, transportation and wholesale industries.

Statistics Canada says the GDP also rose 3.3 per cent year-over-year. Both of these gains matched what analysts had predicted.

The finance and insurance sectors also grew, along with construction and real estate. Mining, oil and gas extraction slowed. Retail sales were also sluggish.

Manufacturing grew 2.8 per cent in January, following a 0.8 per cent gain in December.

Manufacturers of fabricated metals products and car parts saw the largest increase.

The numbers have led to speculation that the Bank of Canada will increase interest rates, even before the U.S. Federal Reserve. But analysts say the bank will most likely wait until the second half of the year before making any changes.

With files from The Canadian Press

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