What is going on with Canada's economy? Talk of a looming recession has been ongoing for months, but the latest GDP figures released today by Statistics Canada show the economy grew faster than expected. The economy grew at a rate of 3.1% in the first quarter, after Statistics Canada had been forecasting an increase of 2.5%.
The news comes one week before the Bank of Canada's next interest rate announcement. The pace of growth has some experts now wondering if we can expect a further rate increase.
Victoria business leaders will have the opportunity to hear directly from the Bank of Canada, as The Chamber hosts the release of the Bank's Economic Progress Report the day after the rate announcement.
Statistics Canada says household spending was up, specifically durable goods such as vehicles and clothes as well as travel. At the same time, investment in housing is down 3.9% with less new construction and renovations taking place across the country. Businesses are also investing less in machinery and equipment.
The Consumer Price Index was 4.4% in April, more than twice the target rate of 2% that the Bank of Canada is working to achieve.