28-02-2025
VIEW Canada's economy grows 2.6% in fourth quarter
TORONTO, Feb 28 (Reuters) - Canada's economy grew faster than expected in the fourth quarter, led by consumer spending, business investments and exports, data showed on Friday.
Market reaction: CAD/
COMMENTS
AVERY SHENFELD, CHIEF ECONOMIST AT CIBC CAPITAL MARKETS
"Canada's economy showed some evident sparks of life in the final quarter of 2024 as it responded to lower interest rates and a sales tax holiday, but that flame could still be extinguished in 2025 if the country faces a tariff wall."
ANDREW KELVIN, HEAD OF CANADIAN AND GLOBAL RATES STRATEGY AT TD SECURITIES
"What you're seeing here is... the easing cycle is really starting to feed through into economic activity. It's very difficult to find a thing to be upset with in this data."
"The only question for the Bank of Canada is if trade disruptions will interrupt the strong momentum. You can really look at the probability for the March meeting as a proxy for imminent trade disruptions."
"If Canada receives another extension, I think the Bank of Canada can look at the data and suggest that they can wait before providing more stimulus."
ADAM BUTTON, CHIEF CURRENCY ANALYST AT FOREXLIVE
"The Canadian economy has certainly faced some headwinds but it exited 2024 in a stronger position than believed. Canadian consumers continue to reach into their wallets and spend though I expect tariff threats to reverse some of that in Q1."
"The Bank of Canada has some tough decisions to make this year on whether to rely on backward looking data or look forward and cushion the headwinds around trade and housing."
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