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MNI BRIEF: Canada Flash Q1 GDP Nearly Double BOC Forecast

(MNI) OTTAWA

Canada's first-quarter GDP grew at almost a 6% annualized pace according to a flash estimate, nearly double the central bank's estimate, as looser Covid restrictions boosted hotels and restaurants in February and oil production rebounded.

Statistics Canada's preliminary data published Friday suggests output rose 1.4% in the first quarter from the fourth quarter of last year. The official figure for February was a 1.1% increase, stronger than the market consensus for 0.8% and the biggest gain in a year. 

Home buyers locking in low mortgage rates also grew the finance industry for a ninth straight month, and overall 16 of 20 industries grew in February. The BOC lifted rates 50bp to 1% earlier this month. Governor Tiff Macklem told lawmakers Monday he’s looking at a similar move at the June 1 meeting and said anything bigger would be unusual.

MNI Ottawa Bureau | +1 613-314-9647 | greg.quinn@marketnews.com
MNI Ottawa Bureau | +1 613-314-9647 | greg.quinn@marketnews.com

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