Latest news with #RBCEconomics
Yahoo
3 days ago
- Business
- Yahoo
Canada's economy charged ahead in the first quarter of 2025 as exporters sought to get ahead of tariffs
Canada's economy grew 2.2 per cent in the first quarter of 2025, Statistics Canada said on Friday. That maintained the pace recorded in the final quarter of last year and significantly exceeded estimates. In a note following the data release, CIBC economist Andrew Grantham cautioned that while real gross domestic product (GDP) growth was "solid," the number was "flattered by a surge in exports as companies looked to front-run potential US tariffs." Economists had expected the economy to grow 1.5 per cent on an annualized basis in the first quarter, according to consensus estimates published by RBC Economics. Grantham noted "weak" domestic demand in the quarter, with "only slight upward momentum heading into Q2." Real gross domestic product (GDP) increased 0.1 per cent in March, matching expectations. The quarterly growth came in above the Bank of Canada's forecasts. The central bank expected real GDP to grow 1.8 per cent on a quarterly annualized basis, according to its latest Monetary Policy Report (MPR). The Friday data also include a revision to fourth quarter 2024 growth, which at the time came in above expectations, adjusting the figure from 2.6 per cent to 2.1 per cent. This story will be updated. John MacFarlane is a senior reporter at Yahoo Finance Canada. Follow him on Twitter @jmacf. Download the Yahoo Finance app, available for Apple and Android.
Yahoo
3 days ago
- Business
- Yahoo
Canada's economy grew 2.2 per cent in the first quarter of 2025: Statistics Canada
Canada's economy grew 2.2 per cent in the first quarter of 2025, Statistics Canada said on Friday, maintaining the pace recorded in the final quarter of last year. Economists had expected the economy to grow 1.5 per cent on an annualized basis in the first quarter, according to consensus estimates published by RBC Economics. Real gross domestic product (GDP) increased 0.1 per cent in March, matching expectations. The quarterly growth came in above the Bank of Canada's forecasts. The central bank expected real GDP to grow 1.8 per cent on a quarterly annualized basis, according to its latest Monetary Policy Report (MPR). The Friday data follow fourth quarter 2024 results that came in above expectations, driven by higher spending and increased business investment and exports. This story will be updated. John MacFarlane is a senior reporter at Yahoo Finance Canada. Follow him on Twitter @jmacf. Download the Yahoo Finance app, available for Apple and Android. Sign in to access your portfolio
Calgary Herald
22-05-2025
- Business
- Calgary Herald
Canadian housing market 'cracks' under weight of trade headwinds
Trade war trauma is taking its toll on Canada's housing market, a new report from RBC Economics has found. The study, released earlier in May, pointed to slowdowns in activity, reflecting a 'crack' in major markets' stability, particularly in Canada's most expensive municipalities in Southern Ontario and the Lower Mainland of British Columbia. Article content Article content In Vancouver, for example, April resales were down year over year by nearly 24 per cent, and in Fraser Valley, sales fell more than 29 per cent. Article content Article content Toronto saw its sales in April drop about 23 per cent. Activity in both Vancouver and Toronto in April were at their lowest levels since the spring of 2020, the report noted. Article content Article content Alberta did not escape the headwinds for demand either, the report found. Calgary resales fell 22 per cent year over year in April, and sales were down 13 per cent in Edmonton. Article content Calgary resales remain about at the average level of the last decade, though well below the record-setting pandemic peak. Article content Only Montreal, the only other city in the study, saw sales growth, increasing about 10 per cent year over year. Even there, RBC has predicted its market will eventually shift to favouring buyers. Article content Prices are also being weighed down. Article content In Toronto, the MLS (Multiple Listing Service) Housing Price Index (HPI) shows the price has fallen more than four per cent since December. RBC Economics added it forecasts prices to fall more if trade worries persist in Ontario. Article content
Calgary Herald
01-05-2025
- Business
- Calgary Herald
Trade war with United States ‘sours' Canadian homebuyers' sentiment
Article content The United States volatile trade policy of on-and-off again tariffs on every nation it trades with, including Canada, has dampened sentiment in the Canadian resale housing market, a new report has found. RBC Economics housing market update from mid-April pointed to resales falling 12 per cent since the start of the year ending March 31, while the supply of existing homes on the market continues to climb. Article content Article content Article content It further pointed to a three per cent increase in new listings nationally from February to March with active listings reaching a five-year high. Article content Article content That's led to more price flexibility for buyers now able to 'extract price concessions from sellers' as they have more choice 'amid a murkier economic landscape,' it added. Article content The MLS Home Price Index in March also fell for the third consecutive month dropping one per cent from February, and two per cent from March 2024. Article content The market overall now reflects a balance of demand and supply with a national sales-to-new-listings ratio of 46 per cent. Any ratio between 40 to 60 per cent reflects a balanced market with some markets, like Edmonton, still above the 60 per cent ratio, indicating the resale market there continues to favour sellers. Article content It was also the only major market to see sales grow, albeit modestly, month over month and year over year. Article content Calgary, in contrast, saw the second largest percentage drop in resales month over month, and year over year. Article content Sales fell about 17 per cent compared to March last year, and nearly five per cent from February. Only Vancouver and Toronto saw larger percentage drops. Vancouver's sales fell more than seven per cent month over month. And in Toronto, sales fell almost 24 per cent year over year. Article content
