Canada’s GDP rose 0.1% in January, following 0.2% growth in December, according to the latest Statistics Canada data.
A country facing economic hostility from its largest trading partner, as Canada faces from the Trump Administration, must build resilience and reduce dependence on that partner.
Over the past year, the federal government has deepened Canada’s trade ties with trading blocs like the EU, democratic allies like India and Japan, and powerful economies like China. The government has also invested in our national defence, taken a more pro-development approach regarding oil and gas, and lowered taxes. Combined with lower immigration levels, this has led to real per capita GDP growth.
With an energy price shock set to hit much of the global economy due to the blocking of the Strait of Hormuz, Canada is by no means in the clear.
Given the headwinds, positive GDP growth in the face of U.S. protectionist policy is a signal that the underlying growth engine is improving.
Spencer Fernando
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