Canadian Economy Performed Well in November

The economy of Canada expanded by 0.7% in November, despite coronavirus restriction

Skerdian Meta•Friday, January 29, 2021•1 min read

The global economy started weakening again in Autumn, after a strong rebound in summer, although in north America the economy is keeping up the pace. The Canadian economy was expected to remain steady at 0.4% in November, but came at 0.7%, while the US economy is also expanding at a decent pace, which contradicts what we are seeing in Europe. The PPI prices also moved higher that month.

Canadian November 2020 monthly GDP

November GDP MoM +0.7% vs +0.4% expected
December GDP MoM was +0.4%
GDP YoY -2.8% vs -3.2% expected
Seventh consecutive monthly gain
Goods producing MoM +1.2%
Services producing MoM +0.5%
Preliminary December GDP +0.3%
Preliminary Q4 GDP +1.9%
Preliminary 2020 GDP -5.1%

That’s a decent result on GDP. I think the December headlines here matter more than the overall numbers. Canada has had one of the better outcomes in 2020, due in part to massive government spending. The IMF estimate this week was for Canadian 2020 GDP at -5.5% and the economist consensus is -5.6%.

Separately, the PPI report was out:

Industrial product prices MoM +1.5% vs +1.4% exp
Raw materials price index MoM +3.5% vs +2.5% exp

That’s a hefty month-over-month rise.

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Skerdian Meta

Lead Analyst

Skerdian Meta Lead Analyst. Skerdian is a professional Forex trader and a market analyst. He has been actively engaged in market analysis for the past 11 years. Before becoming our head analyst, Skerdian served as a trader and market analyst in Saxo Bank's local branch, Aksioner. Skerdian specialized in experimenting with developing models and hands-on trading. Skerdian has a masters degree in finance and investment.