“Real gross domestic product (GDP) grew 0.1% in the first quarter, the same growth rate as the fourth quarter of 2018,” Statistics Canada today reported. With this reading, the annualized rate rose to 0.4% but missed the analysts’ estimate of 0.7%.
Key takeaways from the press release
- Real gross national income rose 0.9%, largely because of higher export prices of crude oil and crude bitumen.
- Higher consumer spending raised final domestic demand, which rebounded 0.8% after a 0.2% decline in the previous quarter.
- Growth in real GDP was driven by a 0.9% increase in household spending and an 8.7% rise in business investment in machinery and equipment.
- These increases were moderated by a 1.0% decline in exports, coupled with a 1.9% increase in imports. Additionally, investment in housing continued to decline, down 1.6% in the first quarter.
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