Canada's economy expands 0.8% in Q1

Canada's economy expanded 0.8% in the first quarter of 2023, compared to the fourth quarter of 2022, according to Statistics Canada figures released Wednesday.

The gain in GDP came higher than the market expectation of a 0.4% increase, after the economy stalled in the fourth quarter of 2022 that ended five consecutive quarters of growth.

"Favourable international trade and growth in household spending were moderated by slower inventory accumulations as well as declines in housing investment and business investment in machinery and equipment," the agency said in a statement.

Statistics Canada noted that final domestic demand increased 0.7% in the first quarter of 2023 after remaining flat in the fourth quarter of 2022.

Exports of goods and services rose 2.4% in the first quarter of this year, following a 0.5% increase in the fourth quarter of last year.

Imports of goods and services posted a 0.2% gain in the January-March period of 2023, slightly recovering from a 3.3% decline in the fourth quarter of 2022.

On a monthly basis, however, the GDP remained unchanged in March, according to Statistics Canada.

While the market expectation for the GDP was to show a monthly gain of 0.2% in March, it increased 0.1% in February.

"Overall, 12 of 20 industrial sectors posted increases in March," the agency said in a separate statement.

Mining, quarrying and oil and gas extraction increased 1.2% in March, posting a third consecutive monthly gain, while oil sands extraction contributed most to the increase with a 2% gain, it added.

But oil and natural gas extraction, except oil sands, edged down 0.1% in March.

The manufacturing sector contracted 0.6% in March, while durable goods manufacturing declined 1% ending two consecutive months of gains.