"A sharp jump in manufacturing volumes and a robust increase in hours worked are anticipated to have provided the bulk of the support to growth"
- economist at TD Economics Diana Petramala
Canada economy accelerated for the second month in a row in February, growing faster than expected and prompting economists to raise their forecasts for the first quarter. Economic output rose 0.3% matching the revised January gain, to an annualized C$1.57 trillion ($1.55 trillion), Statistics Canada said Tuesday. The growth was mostly led by gains at potash miners and factories, putting the economy on track for its fastest quarterly growth since 2011. In the meantime, economists expect modest economic growth to continue in Canada this year.
"Finally there's something to cheer about in the Canadian economy, with growth picking up in the first quarter, and in the cyclical industries where such a turn is more meaningful," Avery Shenfeld, chief economist at Canadian Imperial Bank of Commerce, said in a research note sent by e-mail.
"A sharp jump in manufacturing volumes and a robust increase in hours worked are anticipated to have provided the bulk of the support to growth," economist at TD Economics Diana Petramala said. On the contrary, Petramala expects poor export figures and so sees a downside risk to the forecast. From a year-on-year perspective, Petramala and her colleagues at TD Economics predict GDP to rise by 1.6%.
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