The Canadian economy remained essentially flat on a month-over-month basis in December amid new restrictions implemented to control the Omicron variant. Canadian real GDP is roughly 0.3 per cent above its pre-pandemic, February 2020 level. Preliminary estimates suggest that output in the Canadian economy grew 0.2% in January.Growth in 2021 clocked-in at a robust 4.6 per cent, while the economy accelerated in the fourth quarter with real GDP growth hitting 6.7 per cent annualized. Even with an expected Omicron driven slowdown in the first quarter of 2022, the Canadian economy is clearly on a very strong growth path. At its most recent meeting, the Bank of Canada noted that the slack in the Canadian economy has been largely absorbed and indicated that the bank intends to raise rates following its March 2nd meeting amid strong growth and elevated inflation. The expectation is that the bank will continuing quarterly rate hikes until the overnight policy rate reaches 1.75 per cent, well-above the accommodating 0.25 per cent level which has remained in place since the onset of the crisis.

Link:  https://mailchi.mp/bcrea/canadian-monthly-economic-growth-december-2021

For more information, please contact:

BCREA is the professional association for more than 23,000 REALTORS in BC, focusing on provincial issues that impact real estate. Working with the province’s 11 real estate boards, BCREA provides continuing professional education, advocacy, economic research, and standard forms to help REALTORS provide value for their clients.To demonstrate the profession's commitment to improving Quality of Life in BC communities, BCREA supports policies that help ensure economic vitality, provide housing opportunities, preserve the environment, protect property owners and build better communities with good schools and safe neighbourhoods.