The Canadian economy posted strong growth in the month of November, with real GDP rising 0.4 per cent on a monthly basis. The increase was largely the result of a strong recovery in the manufacturing sector, which had posted a significant decline in October. Of note, the real estate sector posted its first monthly decline since 2012, likely the result of tighter mortgage regulations introduced in October 2016.
Growth in the Canadian economy is estimated to have decelerated in the fourth quarter of 2016 to 1.7 per cent from the wild-fire recovery induced 3.5 per cent growth in the third quarter. We estimate the Canadian economy posted meager 1.3 per cent growth for the year as a whole, but forecast a modest uptick to 2.2 per cent for 2017.
Copyright British Columbia Real Estate Association. Reprinted with permission.