According to data from Statistics Canada, the Canadian economy had a strong start in January.
On Thursday, the agency stated that the real gross domestic product increased by 0.6 per cent in January compared to December.
Statistics Canada attributed the growth in January to a resurgence in the public sector, mainly due to the resolution of strikes in Quebec.
The manufacturing industry in January managed to completely offset the declines seen in December, according to StatCan.
Preliminary data indicates that the real GDP is expected to continue growing in February, but StatCan warns that these early readings could be altered.
Nationwide economic growth has been slowing down due to higher interest rates imposed by the Bank of Canada in an attempt to control inflation. In 2023, the country narrowly avoided entering a technical recession, as per StatCan data. The Bank of Canada is monitoring signs of slowing growth as it considers whether to keep interest rates high. However, policymakers have also expressed their reluctance to maintain high rates for too long, for fear of a detrimental economic impact.
The next policy rate decision from the central bank is scheduled for April 10.
More to come.
Statistics Canada highlighted the recovery in the public sector, largely due to the resolution of strikes in Quebec, as the driving force behind the economic growth in January.
