Canada’s Economy Grows More Than Bank of Canada or Economists Expected
Why it matters
Canada's economy grew at an annualized rate of 3.1% in the third quarter of 2022, Statistics Canada reported on Tuesday. This was stronger than the Bank of Canada's forecast of 2.8% and economists' expectations of 2.9%.
What’s new
The growth was driven by strong consumer spending, business investment, and exports. Consumer spending rose by 1.2%, business investment increased by 2.6%, and exports grew by 1.9%.
The Canadian economy has now grown for five consecutive quarters, the longest stretch of growth since 2017.
Looking ahead
The Bank of Canada is expected to raise interest rates again next week in an effort to curb inflation. However, the strong economic growth suggests that the economy is resilient and can withstand higher interest rates.
Key Points
- Canada's economy grew at an annualized rate of 3.1% in the third quarter of 2022.
- This was stronger than the Bank of Canada's forecast of 2.8% and economists' expectations of 2.9%.
- The growth was driven by strong consumer spending, business investment, and exports.
- The Canadian economy has now grown for five consecutive quarters, the longest stretch of growth since 2017.
- The Bank of Canada is expected to raise interest rates again next week in an effort to curb inflation.
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