Canadian Economy Remains Afloat Despite Restrictions - Forex News by FX Leaders
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Canadian Economy Remains Afloat Despite Restrictions

Posted Tuesday, March 2, 2021 by
Skerdian Meta • 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.
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About the author

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.
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