The Canadian economy advanced 0.1 percent quarter-on-quarter in the fourth quarter of 2018, slowing from a 0.5 percent expansion in the previous period. It was the weakest growth rate since the second quarter of 2016, as real gross national income fell, largely owing to lower export prices of crude oil and crude bitumen and final domestic demand shrank. Expressed as an annualized rate, the GDP expanded 0.4 percent, following a 2 percent gain in the third quarter and well below market expectations of 1.2 percent. Considering full 2018, the economy grew 1.8 percent easing from a 3.0 percent in 2017. GDP Growth Rate in Canada averaged 0.78 percent from 1961 until 2018, reaching an all time high of 3.10 percent in the fourth quarter of 1963 and a record low of -2.30 percent in the first quarter of 2009.

GDP Growth Rate in Canada is expected to be 0.50 percent by the end of this quarter, according to Trading Economics global macro models and analysts expectations. Looking forward, we estimate GDP Growth Rate in Canada to stand at 0.50 in 12 months time. In the long-term, the Canada GDP Growth Rate is projected to trend around 0.60 percent in 2020, according to our econometric models.

Canada GDP Growth Rate
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Calendar GMT Actual Previous Consensus TEForecast
2018-05-31 12:30 PM GDP Growth Rate QoQ 0.3% 0.4% 0.3%
2018-08-30 12:30 PM GDP Growth Rate QoQ 0.7% 0.4% 0.6%
2018-11-30 01:30 PM GDP Growth Rate QoQ 0.5% 0.7% 0.3%
2019-03-01 01:30 PM GDP Growth Rate QoQ 0.1% 0.5% 0.4%
2019-05-31 12:30 PM GDP Growth Rate QoQ 0.1% 0.5%
2019-08-30 12:30 PM GDP Growth Rate QoQ 0.6%
2019-11-29 01:30 PM GDP Growth Rate QoQ 0.2%



Canada Q4 GDP Growth Slows to 0.1% QoQ

The Canadian economy advanced 0.1 percent quarter-on-quarter in the fourth quarter of 2018, slowing from a 0.5 percent expansion in the previous period. It was the weakest growth rate since the second quarter of 2016, as real gross national income fell, largely owing to lower export prices of crude oil and crude bitumen and final domestic demand shrank. Expressed as an annualized rate, the GDP expanded 0.4 percent, following a 2 percent gain in the third quarter and well below market expectations of 1.2 percent.

Household spending slowed for the second consecutive quarter, to 0.2 percent in the fourth quarter from a 0.3 percent increase in the prior quarter, attributable to outlays for goods (-0.2 percent), namely durable (-0.5 percent), as motor vehicles purchases dropped (-0.6 percent); semi-durable (-0.3 percent), and non-durable were flat. Meantime, outlays for services rose 0.5 percent, led by life insurance and financial services (0.9 percent).

Housing investment declined 3.9 percent as the market continued to soften, with the largest decrease in new construction (-5.5 percent), followed by renovations (-2.7 percent) and ownership transfer costs (-2.6 percent).

Gross fixed capital formation shrank 2.7 percent, faster than a 1.7 percent contraction in the previous period. Business investment in non-residential structures, and machinery and equipment went down 2.9 percent, the sharpest drop since the fourth quarter of 2016, as non-residential buildings (-3.1 percent), engineering structures (-4.3 percent), and machinery and equipment (-1.2 percent). These declines were moderated by a 6.1 percent increase in business investment in intellectual property products, mainly attributable to mineral exploration and evaluation, which can be influenced by anticipated prices and potential new reserves.

Export dropped 0.1 percent, following a 0.8 percent increase in the previous quarter, as a 1.6 percent rise in services partly offset a 0.4 percent decline in goods. Export were down for forestry products and building and packaging materials (-3.2 percent); metal and non-metallic mineral (-2.0 percent) and energy (-0.6 percent) products. Meantime, exports rose for travel (3.9 percent) and commercial (1.8 percent) services while decreased for transportation services (-2.7 percent).

Import declined 0.3 percent, after a 2.2 percent in the third quarter of 2018, mostly due to lower purchases of basic and industrial chemicals, plastic and rubber products (-4.6 percent); motor vehicles and parts (-1.3 percent) and metal and non-metallic mineral products (-2.4 percent). On the other hand, imports of energy products were flat, while aircraft, engines and parts rebounded 17.1 percent. Also, purchases of travel services (1.9 percent) and commercial services (0.8 percent) pushed total service import growth to 1.2 percent.

Considering full 2018, the economy grew 1.8 percent easing from a 3.0 percent in 2017.


Statistics Canada | Stefanie Moya | stefanie.moya@tradingeconomics.com
3/1/2019 2:06:20 PM



Canada GDP Last Previous Highest Lowest Unit
GDP Growth Rate 0.10 0.50 3.10 -2.30 percent [+]
GDP Annual Growth Rate 1.60 1.90 9.30 -4.10 percent [+]
GDP Growth Annualized 0.40 2.00 12.60 -9.10 percent [+]
GDP 1653.04 1535.77 1842.63 40.77 USD Billion [+]
GDP Constant Prices 2063439.00 2061339.00 2063439.00 343571.00 CAD Million [+]
Gross National Product 2193020.00 2206964.00 2206964.00 39836.00 CAD Million [+]
Gross Fixed Capital Formation 424259.00 441856.00 448482.00 52611.00 CAD Million [+]
GDP per capita 51315.89 50407.30 51315.89 17664.20 USD [+]
GDP per capita PPP 44017.59 43238.26 44017.59 30115.28 USD [+]
GDP From Agriculture 40595.00 40108.00 40595.00 23668.00 CAD Million [+]
GDP From Construction 135420.00 136603.00 147533.00 71290.00 CAD Million [+]
GDP From Manufacturing 201119.00 202524.00 218407.00 162048.00 CAD Million [+]
GDP From Mining 150615.00 151095.00 155619.00 99564.00 CAD Million [+]
GDP From Public Administration 129628.00 129555.00 129628.00 82547.00 CAD Million [+]
GDP From Services 1373372.00 1370741.00 1373372.00 753366.00 CAD Million [+]
GDP From Transport 88445.00 88051.00 88820.00 51402.00 CAD Million [+]
GDP From Utilities 43101.00 43974.00 43974.00 31420.00 CAD Million [+]


Canada GDP Growth Rate

Canada's economy is diversified and highly developed. Foreign trade is responsible for about 45 percent of the nation's GDP and the United States is by far the largest trade partner. On the expenditure side, household consumption is the main component of GDP and accounts for 58 percent of its total use, followed by gross fixed capital formation (22 percent) and government expenditure (19 percent). Exports of goods and services account for 32 percent of GDP while imports account for 33 percent, subtracting 1 percent of total GDP. Non-profit institutions serving households' final consumption expenditure and investment in inventories account for the remaining 2 percent. This page provides - Canada GDP Growth Rate - actual values, historical data, forecast, chart, statistics, economic calendar and news. Canada GDP Growth Rate - actual data, historical chart and calendar of releases - was last updated on March of 2019.

Actual Previous Highest Lowest Dates Unit Frequency
0.10 0.50 3.10 -2.30 1961 - 2018 percent Quarterly




Country Last Previous
United States 2.60 Dec/18
Saudi Arabia 1.60 Sep/18
China 1.50 Dec/18
India 1.50 Sep/18
Singapore 1.40 Dec/18
South Africa 1.40 Dec/18
South Korea 1.00 Dec/18
Spain 0.70 Dec/18
Japan 0.50 Dec/18
Netherlands 0.50 Dec/18
France 0.30 Dec/18
Russia 0.30 Sep/18
Australia 0.20 Dec/18
Euro Area 0.20 Dec/18
Mexico 0.20 Dec/18
Switzerland 0.20 Dec/18
United Kingdom 0.20 Dec/18
Brazil 0.10 Dec/18
Canada 0.10 Dec/18
Germany 0.00 Dec/18
Italy -0.10 Dec/18
Argentina -1.20 Dec/18
Indonesia -1.69 Dec/18
Turkey -2.40 Dec/18


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