Canadian Gross Domestic Product Falls 0.2% in Unexpectedly Weak February Report: Canada's Economy Pulls Back in February

By Wong, Craig | The Canadian Press, April 30, 2012 | Go to article overview

Canadian Gross Domestic Product Falls 0.2% in Unexpectedly Weak February Report: Canada's Economy Pulls Back in February


Wong, Craig, The Canadian Press


OTTAWA - The Canadian economy unexpectedly shrank in February due to a slowdown in the mining and manufacturing sectors, dampening expectations that the Bank of Canada will raise interest rates soon.

Statistics Canada reported Monday that the country's gross domestic product declined by 0.2 per cent from January. Economists had been expecting growth of 0.2 per cent.

Bank of Montreal deputy chief economist Doug Porter said the Canadian economy "disappointed in a big way in February."

"Much of the weakness looks temporary, but it drives home the point that the underlying growth rate is sluggish at best," Porter said.

"At the very least, the pullback in output will dampen some of the most hawkish views on the Bank of Canada and take some steam out of the Canadian dollar."

The loonie fell 0.72 of a cent to close at 101.22 cents US as investors bet the Bank of Canada will keep its overnight lending rate on hold a little longer.

Just two weeks ago, the central bank signalled that Canadians could soon face higher borrowing costs as it indicated it was getting ready to raise interest rates based on improved prospects for the global and Canadian economies.

"In light of the reduced slack in the economy and firmer underlying inflation, some modest withdrawal of the present considerable monetary policy stimulus may become appropriate, consistent with achieving the two per cent inflation target over the medium term," the central bank said.

CIBC economist Emanuella Enenajor said it looked like the Bank of Canada may have jumped the gun on sounding bullish about first-quarter growth in Canada.

"While markets had been anticipating a string of robust growth in Canada to spur the BoC to step off the sidelines and nudge up rates this year, today's report suggests that the Canadian economy isn't out of the woods just yet," Enenajor said.

Economists at Canada's big banks have been expecting growth of 2.1 to 2.5 per cent for the first quarter, with the Bank of Canada estimating 2.5 per cent. The central bank expects annual GDP growth of 2.4 per cent in both 2012 and 2013.

Enenajor estimated the weak February means the first quarter is more likely to come in at 1.7 per cent, while the second quarter may be stronger than expected at 2.7 per cent.

"That still leaves growth for the year at 2.1 per cent, weaker than the (central) bank's call for 2. …

The rest of this article is only available to active members of Questia

Already a member? Log in now.

Notes for this article

Add a new note
If you are trying to select text to create highlights or citations, remember that you must now click or tap on the first word, and then click or tap on the last word.
One moment ...
Default project is now your active project.
Project items
Notes
Cite this article

Cited article

Style
Citations are available only to our active members.
Buy instant access to cite pages or passages in MLA 8, MLA 7, APA and Chicago citation styles.

(Einhorn, 1992, p. 25)

(Einhorn 25)

(Einhorn 25)

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Note: primary sources have slightly different requirements for citation. Please see these guidelines for more information.

Cited article

Canadian Gross Domestic Product Falls 0.2% in Unexpectedly Weak February Report: Canada's Economy Pulls Back in February
Settings

Settings

Typeface
Text size Smaller Larger Reset View mode
Search within

Search within this article

Look up

Look up a word

  • Dictionary
  • Thesaurus
Please submit a word or phrase above.
Print this page

Print this page

Why can't I print more than one page at a time?

Help
Full screen
Items saved from this article
  • Highlights & Notes
  • Citations
Some of your highlights are legacy items.

Highlights saved before July 30, 2012 will not be displayed on their respective source pages.

You can easily re-create the highlights by opening the book page or article, selecting the text, and clicking “Highlight.”

matching results for page

    Questia reader help

    How to highlight and cite specific passages

    1. Click or tap the first word you want to select.
    2. Click or tap the last word you want to select, and you’ll see everything in between get selected.
    3. You’ll then get a menu of options like creating a highlight or a citation from that passage of text.

    OK, got it!

    Cited passage

    Style
    Citations are available only to our active members.
    Buy instant access to cite pages or passages in MLA 8, MLA 7, APA and Chicago citation styles.

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn, 1992, p. 25).

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn 25)

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn 25)

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences."1

    1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

    Cited passage

    Thanks for trying Questia!

    Please continue trying out our research tools, but please note, full functionality is available only to our active members.

    Your work will be lost once you leave this Web page.

    Buy instant access to save your work.

    Already a member? Log in now.

    Search by... Author
    Show... All Results Primary Sources Peer-reviewed

    Oops!

    An unknown error has occurred. Please click the button below to reload the page. If the problem persists, please try again in a little while.