Latest news with #CanadaEconomy
CTV News
3 days ago
- Business
- CTV News
Canada's first quarter GDP expands, beating estimates as economy reacts to tariffs
A worker uses an angle grinder on a vessel under construction at Seaspan Shipyards, in North Vancouver, B.C., on Thursday, October 10, 2024. THE CANADIAN PRESS/Darryl Dyck Canada's economy in the first quarter grew faster than expected, data showed on Friday, primarily driven by exports as companies in the United States rushed to stockpile before tariffs by President Donald Trump. But an increase in imports that led to inventory build-up, lower household spending and weaker final domestic demand indicate that the economy was battling on the domestic front. Economists have warned that as tariffs continue on Canada, this trend will persist. The gross domestic product in the first quarter grew by 2.2 per cent on an annualized basis as compared with the downwardly revised 2.1 per cent growth posted in the previous quarter, Statistics Canada said. This is the final economic indicator before the Bank of Canada's rates decision on Wednesday and will help determine whether the central bank will cut or stay pat on rates. Currency swap markets were expecting around 75 per cent chance the bank would hold its rates at the current level of 2.75 per cent, before the GDP data was released. Trump's repeated threats and flip-flops on tariffs since the beginning of the year led to an increase in exports and imports to and from the U.S. Trump imposed tariffs on Canada in March, first on a slew of products and later specifically on steel and aluminum. The GDP grew by 0.1 per cent in March after a contraction of 0.2 per cent in February. The economy is likely expected to expand by 0.1 per cent in April, the statistics agency said referring to a flash estimate. The March growth was primarily driven by a rebound in the mining, quarrying, and oil and gas extraction and construction sectors. Analysts polled by Reuters had expected the first quarter GDP to expand by 1.7 per cent and by 0.1 per cent in March. The quarterly GDP figure is calculated based on income and expenditure while the monthly GDP is derived from industrial output. The tariffs and the uncertainty around them started showing early signs of impact as the final domestic demand, which represents total final consumption expenditures and investment in fixed capital, did not increase for the first time since the end of 2023, Statscan said. Growth in household spending also slowed to 0.3 per cent in the first quarter, after rising 1.2 per cent in the prior quarter. The first quarter growth was led by a rise in exports, which jumped by 1.6 per cent after increasing by 1.7 per cent in the fourth quarter of 2024. Business investment in machinery and equipments also increased by 5.3 per cent which pushed the quarterly GDP higher. Reporting by Promit Mukherjee; Editing by Dale Smith
Reuters
3 days ago
- Business
- Reuters
Canada's first quarter GDP expands by 2.2% annualized rate beating estimates
OTTAWA, May 30 (Reuters) - Canada's economy in the first quarter grew faster than expected, data showed on Friday, primarily driven by exports as companies in the United States rushed to stockpile before tariffs by President Donald Trump. But an increase in imports that led to inventory build-up, lower household spending and weaker final domestic demand indicate that the economy was battling on the domestic front. Economists have warned that as tariffs continue on Canada, this trend will persist. The gross domestic product in the first quarter grew by 2.2% on an annualized basis as compared with the downwardly revised 2.1% growth posted in the previous quarter, Statistics Canada said. This is the final economic indicator before the Bank of Canada's rates decision on Wednesday and will help determine whether the central bank will cut or stay pat on rates. Currency swap markets were expecting around 75% chance the bank would hold its rates at the current level of 2.75%, before the GDP data was released. Trump's repeated threats and flip-flops on tariffs since the beginning of the year led to an increase in exports and imports to and from the U.S. Trump imposed tariffs on Canada in March, first on a slew of products and later specifically on steel and aluminum. The GDP grew by 0.1% in March after a contraction of 0.2% in February. The economy is likely expected to expand by 0.1% in April, the statistics agency said referring to a flash estimate. The March growth was primarily driven by a rebound in the mining, quarrying, and oil and gas extraction and construction sectors. Analysts polled by Reuters had expected the first quarter GDP to expand by 1.7% and by 0.1% in March. The quarterly GDP figure is calculated based on income and expenditure while the monthly GDP is derived from industrial output. The tariffs and the uncertainty around them started showing early signs of impact as the final domestic demand, which represents total final consumption expenditures and investment in fixed capital, did not increase for the first time since the end of 2023, Statscan said. Growth in household spending also slowed to 0.3% in the first quarter, after rising 1.2% in the prior quarter. The first quarter growth was led by a rise in exports, which jumped by 1.6% after increasing by 1.7% in the fourth quarter of 2024. Business investment in machinery and equipments also increased by 5.3% which pushed the quarterly GDP higher.
CBC
3 days ago
- Business
- CBC
Canada's GDP grew by annualized rate of 2.2% in first quarter
Business · Breaking Canada's economy grew by 2.2 per cent on an annualized basis in the first quarter, Statistics Canada said on Friday. (Mark Blinch/Reuters) Canada's economy grew by 2.2 per cent on an annualized basis in the first quarter, Statistics Canada said on Friday. More to come.
CBC
5 days ago
- Business
- CBC
Carney met with former prime minister Harper on day of throne speech: sources
Social Sharing During a visit to Ottawa to watch the King deliver the speech from the throne, former prime minister Stephen Harper met privately with Prime Minister Mark Carney, according to two sources familiar with the matter. The Prime Minister's Office declined to comment on the meeting, with spokesperson Audrey Champoux saying they "had nothing further to say." CBC News reached out to Harper for comment via his consulting firm, Harper & Associates, but did not immediately receive a response. Though it's unclear what they discussed, the two men have a long shared history that was highlighted repeatedly during the federal election campaign. Carney was the governor of the Bank of Canada from February 2008 to June 2013, while Harper was serving as prime minister. Both played a role in steering the country's economy through the 2008 financial crisis. During the federal election, Harper endorsed Conservative Leader Pierre Poilievre, who served as a cabinet minister in his government. Harper appeared in Conservative ads in the latter part of the campaign, and also wrote a fundraising letter taking aim at Carney's role in managing the recession. "I have listened, with increasing disbelief, to Mark Carney's attempts to take credit for things he had little or nothing to do with back then," wrote Harper in a letter used for Conservative fundraising. He said Carney was not involved in the "day-to-day management" of Canada's economy during the global recession and was undermining the work of former finance minister Jim Flaherty. Flaherty died of a heart attack in 2014, weeks after retiring from Harper's cabinet. The current prime minister painted a rosier portrait of his relationship with Harper. In an interview with CBC's chief political correspondent Rosemary Barton during the Liberal leadership race, Carney said he had been offered other political positions before deciding to run. "For example, Prime Minister Harper asked me if I would be his finance minister in 2012," Carney said. He said he declined the offer because he felt it "wasn't appropriate." He said it didn't feel right to "go directly from being governor into elective politics." A Harper-era communications director said in February that Carney was "not telling the whole story." Harper was also seen engaging with another former prime minister, his former political rival Justin Trudeau, at Tuesday's speech from the throne. They were photographed in conversation, exchanging jokes and laughs.
CTV News
22-05-2025
- Business
- CTV News
Carney says single government mandate letter reflects a ‘unified mission'
Prime Minister Mark Carney speaks with media during a news conference in Ottawa, Wednesday, May 21, 2025. THE CANADIAN PRESS/Adrian Wyld OTTAWA -- Prime Minister Mark Carney laid out a handful of collective core priorities for his new ministers on Wednesday, vowing his government will work to bring down the cost of living and reconfigure some of Canada's most important international relationships. Carney released just one single mandate letter publicly for his entire cabinet, rather than the traditional spate of individual assignments. He said this shows every member of his cabinet shares 'a unified mission.' 'This one letter outlines the core priorities of Canada's new government, reflecting the mandate that Canadians have given to us,' he said. 'The government is charged to build the strongest economy in the G7, an economy that works for everyone, to bring down the cost of living for Canadian families, to keep our country's security -- our communities -- safe, to develop a new economic and security relationship with the United States, and to build new partnerships with reliable allies around the world.' Carney made the comments while speaking to reporters on Parliament Hill after holding a secretive, two-day retreat with his new cabinet in Gatineau, Que. In a break from the tradition followed by Justin Trudeau's Liberal government, media were not allowed on site at Meech Lake to ask ministers questions -- placing the spotlight squarely on Carney this evening. Several ministers made headlines in the last week by giving conflicting messages to the media on pipeline policy, reporting there would be no budget until fall and declaring that lowering housing prices would be the wrong approach to making homes more affordable. The letter explicitly directs them to assess how they should proceed to govern through their individual departments. 'Over the coming weeks, I will look to each of you to identify the key goals and measures of success on which to evaluate the results you will achieve for Canadians as a member of the Ministry,' the letter reads. In the mandate letter, Carney also said he expects each cabinet committee, led by a chair, to 'drive and monitor' progress. He said that should be done with oversight from the priorities, planning and strategy committee -- chaired by the prime minister -- and direction from the full cabinet. A number of new cabinet committees were announced last week that reflect the government's focus on shoring up Canada's sovereignty and improving the quality of life of Canadians. They include a new 'Build Canada' committee, focused on strengthening Canada's economy and a committee on government transformation and efficiency, aiming to reduce government spending. Other new groups include a committee on operations and parliamentary affairs, a committee for 'quality of life and wellbeing' and a committee on a 'secure and sovereign Canada' that aims to reinforce Canadian sovereignty, manage Canada-U.S. relations and advance Canada's interests around the world. Carney spoke with journalists after emerging from what his office called a cabinet 'planning forum' held at Meech Lake to prepare for the new sitting of Parliament that starts next week. At the press conference Wednesday, Carney was also asked about Liberal MPs considering adopting Reform Act rules to have the power to trigger a leadership review. Carney said all recognized parties in Parliament are bound by the Reform Act and that votes will take place at the first caucus meeting on Sunday. 'I observe that this will happen,' Carney said. The new minority Parliament meets for the first time on Monday to elect a new House Speaker and will watch King Charles III deliver the speech from the throne on Tuesday. This report by The Canadian Press was first published May 21, 2025. By Kyle Duggan and Catherine Morrison
