Industry

Canada’s economy stalls in Q4, ending 5 straight quarters of growth

Canada's economy stalled in the fourth quarter of 2022, ending five consecutive quarters of growth, according to Statistics Canada figures released Tuesday.

Gross domestic product (GDP) was nearly unchanged in the fourth quarter last year, coming far below the market estimates of a 1.5% expansion.

"Slower inventory accumulations along with declines in business investment in machinery and equipment and housing offset higher household and government spending and improved net trade," the agency said in a statement.

While the North American economy expanded 0.7% in the third quarter of 2022, GDP grew 0.8% in the second quarter.

Rising prices in the first and second quarters of last year contributed to an 11% increase in nominal GDP in 2022, according to the agency.

"On an annual basis, real GDP and final domestic demand rose for the second consecutive year, following the COVID-19 pandemic-induced contraction in 2020," the statement said.

On a monthly basis, real GDP declined 0.1% in December, following a 0.1% gain in November.

Real GDP is set to show an increase of 0.3% in January, according to advance estimates, led by gains in the mining, and oil and natural gas extraction, wholesale trade, transportation and warehousing sectors, according to Statistics Canada.

Source: Anadolu Agency