Canada Registers 5 Percent GDP Growth In Q4 2009

March 2, 2010 5:39 a.m. EST

Topics: government, politics, economy, business and finance, national government, economy, Canada

AHN Staff

Ottawa, Ontario, Canada (AHN) – Canadian Prime Minister Stephen Harper will have another weapon up his sleeve to bolster his claim that the Tories’ economic policies are working. Statistics Canada released on Monday the 4th quarter 2009 gross domestic product growth rate, which was 5 percent.

The 5 percent economic growth rate beats the Bank of Canada ‘s earlier forecast of 3.3 percent, but may cause the Canadian central bank to increase the key lending rate of 0.25 percent after June 30, 2010.

Harper could also use the GDP data when Parliament reopens on March 4 and the Conservative-led minority government presents its budget proposal for fiscal year 2010.

The Q4 2009 economic growth was fueled by the mining, and oil and gas production sectors, and further boosted by higher natural gas prices. The manufacturing and construction industries registered improvements, as well as the service producing industries such as wholesale trade and real estate.

The Bank of Montreal, in a commentary, compared the GDP data to Canada’s victory in the recent 2010 Vancouver Games, headlining it as a golden finish for 2009. At the same time, BMO economist Douglas Porter reiterated the likelihood that the improved Canadian economy would trigger benchmark lending rate hikes.

Porter wrote, “Between the structure of the strong Q4 advance and the robust monthly results, this report shouts strength, and increases the odds the Bank of Canada will begin to hike interest rates in July and stay on that path in the following decisions.”

Posted via web from Toronto Real Estate News | Blog


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