TORONTO, June 1 (Reuters) – Canada’s first quarter annualized growth rose 5.6%, reflecting continued strength in the economy influenced by favorable mortgage rates, government transfers and stronger employment, Statistics Canada said on Tuesday.
Canada’s economy is expected to contract 0.8% in April, according to a preliminary estimate, while March real GDP rose by 1.1%, Statscan said.
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COMMENTARY
DOUG PORTER, CHIEF ECONOMIST AT BMO CAPITAL MARKETS
“No big surprise there. Almost every pre-release we’ve seen pointed to a decline in April. I don’t believe it significantly changes the outlook for the Bank (of Canada). They were talking about the output gap and inflation getting back to target by late 2022. That’s still a long way from here, so I don’t think that this really significantly changes their timeline.”
“There was some view out there that the Bank might be going even earlier and this will probably calm that kind of talk.” “Consumer has done better than expected around the turn of the year. When things partially reopen, consumers will spend big time and when things are fully reopened, they will engage completely I believe.”
Reporting by Maiya Keidan Editing by Denny Thomas
