Canada’s GDP growth in the 1st quarter of 2023

Real gross domestic product (GDP) rose 0.8% in the first quarter of 2023 after being flat in the previous quarter, Statistics Canada reported Wednesday.

Exports of goods and services rose 2.4% in the first three months of the current year, after rising 0.5% in the fourth quarter of 2022. Recent growth has been mainly driven by exports of passenger cars and light trucks. Meanwhile, imports of goods and services rose 0.2% after falling 3.3% in the last quarter of 2022.

Statistics Canada shows household spending on both goods and services increased in the first quarter of 2023, after two quarters of minimal growth.

The federal agency calculated that the Canadian economy grew by an annualized 3.1% in the first quarter. The latest data shows growth beat Canada’s own estimate of 2.5% in the quarter.

With the Bank of Canada expected to make its next interest rate announcement next week, the economy’s continued resilience will lead to talk of a rate hike.