Steve Flynn  RE/MAX Central 

Cell: 604.785.3977 |

Canadian Real GDP Growth (Q4) - March 2, 2018

The Canadian economy closed 2017 on somewhat of a disappointing note, growing just 1.7 per cent in the fourth quarter. The consensus forecast of economists was for growth north of 2 per cent.  The slowdown in growth was primarily due to slower household spending, which posted its lowest rate of growth in almost two years. Due to a very strong first half of the year win which the economy expanded at a more than 4 per cent rate, for the year as a whole Canadian real GDP grew at a rate of 3 per cent, the strongest growth since 2011.

Most estimates now put the Canadian economy at or very close to full-employment, meaning that there is little room for Canadian firms to expand output without putting undue pressure on inflation. Given that, we are forecasting that the Bank of Canada will follow up its January rate increase with at least one more rate increase in 2018. However, a larger than expected slowdown in growth over the second half of 2017 means the Bank will likely hold off until it can properly assess the impact not only of its own tightening over the past year, but also the impact of newly implemented B20 guidelines on mortgage qualification rules.

 

 

Copyright British Columbia Real Estate Association. Reprinted with permission.

 

 

Comments:
No comments

Post Your Comment:

The data relating to real estate on this website comes in part from the MLS® Reciprocity program of either the Real Estate Board of Greater Vancouver (REBGV), the Fraser Valley Real Estate Board (FVREB) or the Chilliwack and District Real Estate Board (CADREB). Real estate listings held by participating real estate firms are marked with the MLS® logo and detailed information about the listing includes the name of the listing agent. This representation is based in whole or part on data generated by either the REBGV, the FVREB or the CADREB which assumes no responsibility for its accuracy. The materials contained on this page may not be reproduced without the express written consent of either the REBGV, the FVREB or the CADREB.