Canadian Economy Remains Afloat Despite Restrictions

The GDP of Canada increased by 9.6% in Q4 of last year

Written by: Skerdian Meta • Tuesday, March 2, 2021 • 1 min read

The coronavirus restrictions returned in Canada in December, but the economy seems to be keeping the pace of expansion despite that. The GDP increased by 0.1%, which is not much but at least it didn’t turn negative again like in Europe. The Q4 GDP in total came quite strong nonetheless, at 9.6%.

Q4 GDP % QoQ annualized +9.6% vs +7.3% expected
Q3 GDP QoQ final number was +40.3% annualized
December GDP MoM +0.1% vs +0.1% expected
December GDP YoY -3.0% vs -3.0% expected
November GDP YoY was -2.8%
November GDP MoM was +0.8%
January GDP flash estimate +0.5%
18 of 20 sectors grew in Q4
Full report

The annualized number is much stronger but the December data is in line. Total activity is 3% below pre-pandemic levels. Retail trade was down 3.3% in December as governments put on lockdowns right after Christmas but even non-store retail (online) was down 1.1% in the month due to the secular move towards earlier Christmas shopping.

The big surprise to me is the January flash estimate, up 0.5% in a month of heavy lockdowns across the country. That bodes well for 2021 growth. USD/CAD is slightly higher in the aftermath but that’s part of a broader move in markets. This is a good report.

Check out our free forex signals
Follow the top economic events on FX Leaders economic calendar
Trade better, discover more Forex Trading Strategies
Open a FREE Trading Account

ABOUT THE AUTHOR See More

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.