Nelson BC real estate blog by Robert Goertz of Valhalla Path Realty. Keeping you up to date with the Nelson and West Kootenay real estate markets.
Monday, June 1, 2015
Canadian Economic Growth (Q1)
Growth in the Canadian economy was modestly worse than
expected in the first quarter of 2015 with real GDP contracting at an
annualized rate of 0.6 per cent. This was the first negative quarter for the
economy since the second quarter of 2011. Household consumption was dragged
down by lower incomes in oil-producing provinces and posted the smallest
quarterly gain in three years at just 0.1 per cent. An oil-led second
consecutive quarterly decline in exports, declining business investment and a
fall in government spending were more than enough to offset meager gains in
consumption spending to tip economic growth into negative territory.
Most economists, including the Bank of Canada, anticipate
that the negative impact of the collapse in oil prices will be largely
contained in the first quarter and that growth will recover from the second
quarter onward. The Banks choice to hold its overnight rate steady at its
meeting earlier this week is a good indication that they do not see a further
deterioration in the economy going forward. We expect that economic growth will
accelerate from here, likely in a range of 2 to 2.5 per cent at a annualized
rate for the remainder of the year.