The article discusses the latest GDP data from Canada, which shows that the economy grew more than expected in December. Economists are weighing in on what this means for the Bank of Canada and its interest rate decisions.
Some key points mentioned in the article include:
- The Canadian economy received a boost from strong growth in the US, with the US economy expanding 3.3% in the latest quarter.
- November’s gains were largely due to sectors that benefit from exports, such as manufacturing and resources.
- The Bank of Canada may be less likely to cut interest rates soon, given the stronger-than-expected GDP data.
The article features quotes from several economists, including:
- Andrew Grantham (CIBC Capital Markets): "The Canadian economy closed out the year more emphatically than expected…"
- Bryan Yu (Central 1): "November’s GDP points to an economy with some life in the fourth quarter and positive momentum heading into 2024…"
- Andrew Grantham (CIBC Capital Markets): "…the bank will put more stock in the next set of jobs and inflation numbers."
- Bryan Yu (Central 1): "We retain our June call for the first move" on interest rate cuts.
- Gordon Houlden, director of the University of Alberta’s China Institute: "The Chinese economy is a critical component of global trade… If China were to contract, it would have significant implications for Canada and other countries."