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Canada’s economy posts 1.7% annual growth in fourth quarter, caps year at 3%


Even with the slowdown in growth, senior economist Krishen Rangasamy of National Bank of Canada described the end of 2017 as a good hand for 2018.

"With this growth you can expect a sharp moderation, that's what we had in the second half of the year ", said Rangasamy, who predicted a growth of 2.6 percent this year.

"The outlook for 2018 is still positive."

Other analysts were less optimistic about the coming months.

BMO chief economist Douglas Porter said that the solid content behind the fourth quarter report, such as business investment and housing figures, gave it a "slightly rosier shine".

"The main message, however, is that the exciting growth from mid-2016 to mid-2017 is now a thing of the past, and the economy is back in the hustle and bustle to plunge slightly closer to the potential of about two percent," Porter wrote. in a note to customers. [19659002] For 2017 as a whole, Statistics Canada Household spending has easily made the biggest contribution to growth, followed by inventory and business investment. Exports also grew for the second consecutive year with profits in both goods and services.

"A large part of this growth was due to the first two quarters of 2017, with a lag until the end of the year," the report said. 19659002] The figure of three percent for 2017 corresponds to the projection by private economists that was included in the federal budget on Tuesday. The budget also predicted real GDP growth of 2.2 percent in 2018 and 1.6 percent next year.

Craig Alexander, chief economist at the Conference Board of Canada, said the country had the strongest growth in the G7 last year, but is now slowly declining in 2018 in an increasingly uncertain time.

"This cooling in Canadian growth comes at a time when there are a large number of downside risks to the domestic economy from abroad, particularly US trade and tax policies," Alexander said in a statement, referring to Concerns about business concerns regarding the unknowns of US corporate tax reductions and NAFTA's renegotiation.

The lecture on economics follows a report Thursday by Statistics Canada that foreign direct investment in Canada was $ 33.8 billion, the lowest level since 2010 and a record $ 126.1 billion in 2007.

Conservative MEP Pierre Poilievre said on Friday that he thinks the economy was lifted last year by temporary factors and he noted that "ominous signs" are emerging as a result of the uncertainty in the US, the slowdown in growth and the weakening of investment.

With these issues in mind, he said he was concerned about the expected deficits in the Trudeau government's recent budget, including a $ 18.1 billion deficit for 2018-19.

"They assumed that a brief burst of happiness was permanent and instead of saving up for a rainy day, they emptied the cupboard," Poilievre said.

Looking back in the first half of 2017, Canadian growth was even stronger than previously thought. On Friday, Statistics Canada changed its real GDP figures for the first and second quarters.

For the first quarter, the estimate was increased to four percent of 3.7 percent; for the second quarter, the revised growth was 4.4 percent, an increase of 4.3 percent compared to the first measurement.

According to the sector, the entire year 2017 was reported by the industry, with 18 of the 20 sectors with increases

. ] The goods-producing industry expanded 4.6 percent compared with two-consecutive year contractions of 0.5 percent in 2016 and 1.7 percent in 2015. The largest contribution to the growth of the goods-producing industry in 2017 came from the extraction of natural resources, which expanded by 7.8 percent

The services sector expanded 2.8 percent last year for its highest growth rate since 2011. It was led by a 7.5 percent increase in the wholesale sector.

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