Canada ekes out GDP growth despite higher rates

Economy
Written By Theophilos (Theo) Argitis

UNSPLASH/Remy Gieling

Canada continued to eke out some (albeit sluggish) growth in the second quarter of 2024, showing continued resilience to higher interest rates.

The economy grew by 0.3 per cent in April, Statistics Canada reported on Friday. Preliminary numbers showed a 0.1 per cent increase for May. The data suggest the economy is on track for growth of at least 1.5 per cent in the second quarter, in line with the first quarter pace of 1.7 per cent.

Growth is below what the Bank of Canada would consider the economy's potential – it can grow at a much faster pace without stoking inflation because the population is increasing so quickly – and this will give the central bank confidence it can cut rates further from here.

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Theophilos (Theo) Argitis

As former Ottawa Bureau Chief for Bloomberg News, Argitis brings a deep understanding of the strategic implications of the politics and policies shaping future economic and business conditions. Born in Athens and raised in Montreal, he graduated from McGill University and holds a Masters degree in economics from the University of Toronto.

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