Canada’s economy still showing modest growth to start 2024 – National

The Canadian economy was off to a solid start in January, Statistics Canada data shows.

The agency said Thursday that real gross domestic product in the first month of the year rose 0.6 per cent from December.

Statistics Canada pointed to a rebound in the public sector, tied largely to the end of strikes in Quebec, as driving the growth in January.

The manufacturing industry in January also fully offset declines seen in December, StatCan said.

Initial estimates show real GDP is expected to keep growing in February, though StatCan cautions that those early readings can be revised.

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Bank of Canada says it’s still ‘too early’ to cut interest rates

Economic growth has been slowing nationally amid higher interest rates from the Bank of Canada aimed at taming inflation. The country narrowly avoided falling into a technical recession in 2023, according to StatCan data.

The Bank of Canada is looking for signs growth is still cooling as it weighs whether or not interest rates need to remain elevated, but policymakers have also said they do not want to leave rates high for too long and risk a worse economic outcome.

The central bank’s next policy rate decision is set for April 10.

More to come.

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