Canada’s GDP rises in the first quarter of 2023

Statistics Canada reported on Wednesday that real gross domestic product increased 0.8% in the first quarter of 2023 after being flat in the previous quarter.

Exports of goods and services grew by 2.4% in the first three months of the current year, after increasing by 0.5% in the fourth quarter of 2022. The recent growth was mainly driven by exports of passenger cars and light trucks. Meanwhile, imports of goods and services rose 0.2% after declining 3.3% in the fourth quarter of 2022.

Statistics Canada adds that after two quarters of anemic growth, household spending increased on both goods and services in the first quarter of 2023.

The federal agency calculated that Canada’s economy grew at an annual rate of 3.1% in the first quarter. The latest data shows that growth beat Statistics Canada’s forecast of 2.5% for the quarter.

The continued resilience of the recent economy is likely to spur a potential rate hike, as the Bank of Canada is expected to announce its next interest rate next week.