The Globe and Mail reports in its Thursday edition that the Canadian economy showed resilience over the winter, managing to escape the second wave of COVID-19 without a decline in overall output.
The Globe's Matt Lundy writes that it has become something of a trend in the recovery process: Economic indicators are frequently topping estimates. Notably, the economy is running much hotter than the Bank of Canada predicted in January, when it forecast a contraction for the first quarter.
Instead, a healthy expansion has taken hold. Real gross domestic product rose 0.7 per cent in January, outrunning a previous estimate of 0.5 per cent, Statistics Canada said Wednesday. That leaves economic activity about 2.6 per cent lower than prepandemic. A further 0.5-per-cent expansion is estimated for February. Even if March comes in flat, first-quarter growth is tracking above 5 per cent on an annualized basis.
"This is yet another pleasant upside surprise," Bank of Montreal chief economist Doug Porter said in a note.
"Given that we are now facing yet new restrictions in many regions, the economy's ability to soldier forward through the shutdowns is truly encouraging." Wholesale trade jumped 3.9 per cent in January.
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