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Monthly GDP Tepid But More Resilient Than Expected

CANADA DATA
  • GDP increased the 0.1% in November that the flash release had estimated, as growth in service industries (+0.2%) was partly offset by a decline in goods-producing (-0.1%).
  • The December advance puts growth at “essentially unchanged”, which if confirmed will leave growth of 1.6% annualized in Q4.
  • Monthly prints can differ from the official quarterly series but it currently leaves GDP growth tracking slightly stronger than the 1.3% the BoC forecast for Q4 just in last week’s updated MPR (itself revised up from 0.5% prior). The Bank then expects GDP growth to slow further to 0.5% in Q1.

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