It was a strong start for the Canadian economy as real GDP expanded 0.7 per cent on a monthly basis in January. The increase in January marks the ninth consecutive month of positive economic growth, however, total economic activity is still about 3 per cent below its pre-COVID-19 level. With the strong start to 2021, first quarter real GDP growth is tracking at 5.5 per cent on an annualized basis.
An acceleration of vaccinations appears to be on the immediate horizon. As that roll-out progresses, we expect pent-up spending throughout the economy to be unleashed, driving a strong economic recovery. Following an unprecedented contraction in 2020, we expect the Canadian economy will enjoy two years of very strong growth with the economy expanding by more than 5 per cent this year and about 4.5 per cent in 2022.
Copyright British Columbia Real Estate Association. Reprinted with permission.