Canada: GDP grows by 3% in 2017

According to Statistics Canada, the Canadian GDP grew by 1.7% in Q4, which despite being lower than the overall 3% growth of 2017 is considerably higher than the 1.4% growth experienced in 2016.

This growth was driven by a 2.3% in the business investment and a 0.5% rise in household spending.

National Bank of Canada economist, Krishen Rangasamy, said: “with growth like this, you can expect a sharp moderation”.

Rangasamy believes 2018 GDP will grow by 2.6%, with the year being “still positive”. This sentiment isn’t shared by all economists, as Craig Alexander, the Chief Economist for Conference Board of Canada, believes 2018 will be a soft year and “this cooling in Canadian growth comes at a time when there are a host of downside risks to the domestic economy from abroad, particularly U.S. trade and tax policy.”

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