It was just one year ago that the Canadian economy slipped into a technical recession: however, 12 months on and there are at least some reasons to be positive about the country’s economic outlook.
According to figures released today by Statistics Canada, the economy enjoyed 0.8 per cent growth during the final quarter of 2015 – putting it well ahead of what were, admittedly, low expectations.
Economists’ predictions had the rate of GDP coming in flat – but the number of imports helped to offset this.
Still, the report was not staggeringly impressive and Statistics Canada still described the results as indicative of “slow growth”. This, it said, was largely due to low domestic demand, as well as relatively weak exports and business investments.
Nevertheless, it is an upturn from the situation one year ago when the economy contracted during both of the first two quarters of 2015 – by 0.9 per cent and then 0.4 per cent. Real GDP enjoyed a bounce back in the third quarter, jumping by 2.4 per cent.
The release of the statistics is timely with a spring budget due on March 22. It is expected to contain a vast number of commitments, including related to infrastructure spending which, it is hoped, will help spark a revival for the economy and the creation of a host of new jobs. This came after the Liberal Government acknowledged that the deficit could pass $20 billion: while other observers predict it could stretch to as much as $30 billion.