Canadian GDP expands 3.9 per cent, just off expectations recent

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Canadian GDP expands 3.9 per cent, just off expectations

OTTAWA — Canada's economy grew slightly slower than expected in the first quarter, according to data released Monday.


Statistics Canada said gross domestic product grew at an annualized rate of 3.9 per cent, just short of the four per cent expected by economists polled by Bloomberg.


Fourth-quarter growth was revised down to 3.1 per cent from 3.3 per cent.


This most recent rate of economic growth marked the fastest pace since the first quarter of last year, when the economy expanded 5.6 per cent on an annualized basis, revised up slightly from 5.5 per cent.


Expressed in non-annualized terms, the economy grew one per cent in the first quarter, Statistics Canada said, compared to 0.8 per cent in 2010's last quarter.


Business investments in plants and equipment were up 3.2 per cent, the fifth straight increase, possibly reflecting firms' eagerness to take advantage of the high Canadian dollar's buying power.


Exports were up 1.6 per cent in the first quarter, while imports rose 2.2 per cent.


Statistics Canada said all major industrial sectors expanded their output in this year's first quarter, except retail, and arts, entertainment and recreation. Manufacturing, along with mining and oil-and-gas extraction, were the industry sectors contributing most to economic growth in the last quarter.

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Business investments in plants and equipment were up 3.2 per cent, the fifth straight increase