Canadian real GDP grew by 0.7% in November, following a 0.4% increase in the previous month. This is the seventh consecutive monthly gain since the steepest drops in Canadian history was observed in March and April. This brings GDP 3% below the February pre-pandemic level of output. Fourteen of the twenty industries reported an increase in output.
Leading the increase were the mining and oil and gas sectors (3.9%) due to higher international demand. Manufacturing was up (1.7%) as a result of higher inventory formation, and multiple global COVID-19 vaccine announcements drove activity in finance and insurance (1.3%). In contrast, declines were reported at clothing stores (-5.4%), personal care stores (-1.8%), auto dealers (-0.6%), and real estate agent and broker offices (-2.6%). Housing resale activity was down in November in the majority of large Canadian cities.
Early estimates from Statistics Canada indicate that real GDP grew by 0.3% in December. This is good news, indicating that the economy is showing resilience given the second wave of infections and lockdowns in many large provinces.
Copyright British Columbia Real Estate Association. Reprinted with permission.