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Canada’s gross domestic product (GDP) grew 0.7 per cent on a month-over-month (MoM) basis in January 2021, compared with a 0.1 per cent increase in December 2020, as the Statistics Canada report released on Wednesday, March 31.
The GDP rose for the ninth month in a row, offsetting the sharpest drops in the Canadian economy witnessed in March and April 2020.
The rise was driven by an acceleration in wholesale businesses, which rose by 3.9 per cent MoM in January, compensating for a 1.5 per cent drop in December. The manufacturing sector also swelled by 1.9 per cent MoM in January, offsetting the 0.7 per cent reduction in December.
Goods-producing and service activities soared by 1.5 per cent and 4 per cent rise in January, respectively.
The mining, quarrying, and oil and gas extraction sector jumped 2.7 per cent MoM in January, a fifth consecutive monthly rise. Construction also advanced by 1.4 per cent MoM, primarily residential construction was up 3.1 per cent MoM in January. However, retail trade contracted for the third time in the last four months. The segment was down 1.7 per cent.
Financial services also increased by 0.8 per cent MoM, led by a 7.1 year-over-year rise in household mortgage debt, elevating deposits in banks. The public sector saw a marginal growth of 0.3 per cent in January, guided by the healthcare and related services, that soared by 1.2 per cent MoM.
GDP Growth Estimate For February
The data agency expects 0.5 per cent MoM rise in February GDP.
Retail sector, construction activities, and real estate and leasing and rental will propel the growth, but manufacturing may counterpoise some of the increase. The interim projections are correct, it could be the tenth consecutive monthly rise in GDP.
