Close X
Thursday, November 14, 2024
ADVT 
National

Canadian economy grew 4.6% in 2021

Darpan News Desk The Canadian Press, 01 Mar, 2022 11:17 AM
  • Canadian economy grew 4.6% in 2021

Statistics Canada said Tuesday the economy grew 4.6 per cent last year, compared with a decline of 5.2 per cent in 2020, the first year of the COVID-19 pandemic.

Growth in the fourth quarter came in at an annualized rate of 6.7 per cent.

Between March and September 2020, the Canada Emergency Wage Subsidy was used at least once by 41.6% of the emplhttp://ow.ly/wuEM30sccAmoyer #businesses that were active in February 2020. Learn more: https://t.co/hHxXEUTl8T . pic.twitter.com/j40clYgdez

— Statistics Canada (@StatCan_eng) March 1, 2022 >Statistics Canada said the largest contributor to economic growth last year was household spending and residential construction as new home construction, resales and renovations increased at near-record levels.

The increase of 15.4 per cent for the year was second only to the 17.4 per cent gain recorded in 1983 as the country came out of a recession the previous year.

Household mortgage debt increased by an unprecedented $182.4 billion last year, Statistics Canada said, bringing the total amount of residential mortgages countrywide to $1.93 trillion in December.

Output was flat at the end of 2021 as Statistics Canada said real gross domestic product was essentially unchanged in December. That left the Canadian economy 0.4 per cent above pre-pandemic levels recorded in February 2020.

The agency also said in an early estimate that the Canadian economy grew by 0.2 per cent in January.

The January figure came as a bit of surprise for economists who expected a pullback in the month amid the Omicron wave that led to a loss of 200,000 jobs in the month.

Royce Mendes, managing director and head of macro strategy at Desjardins, said the economy likely built on that momentum in February as the country turned a corner on the latest wave of the pandemic, which allowed for businesses to reopen across the country.

The figures come a day before the Bank of Canada's next scheduled interest rate announcement. The central bank is widely expected to raise its key policy rate on Wednesday in the first of what is expected to be several hikes higher this year.

They also landed the same day as parliamentary budget officer Yves Giroux released his updated outlook on the Canadian economy and federal finances.

Giroux's report released Tuesday said the economy, after a weak start to 2022, should grow 3.9 per cent this year, driven by a sharp rebound starting in the second quarter.

He also foresees a budget deficit this fiscal year of $139.8 billion, and $47.9 billion in the next fiscal year which starts in April — both figures being better than the government projected in its financial update in December.

But Giroux warns that rosier financial picture for federal books, aided by a better-than-expected economy, could easily sour.

Giroux said outstanding Liberal election promises amount to $48.5 billion in new spending. If much of that shows up in this year's budget, Giroux says debt and deficits would rise.

MORE National ARTICLES

Canfor to sell B.C. tenure, assets for $70M

Canfor to sell B.C. tenure, assets for $70M
The Vancouver-based company says the sale of its rights to manage the forest and harvest timber to the McLeod Lake Indian Band and Tsay Keh Dene Nation is subject to approval from the provincial government.

Canfor to sell B.C. tenure, assets for $70M

Girl found safe, to be returned to mother

Girl found safe, to be returned to mother
Last month, police issued a Canada-wide warrant for the arrest of Michael Gordon Jackson and charged him with abduction in contravention of a custody or parenting order.

Girl found safe, to be returned to mother

597 COVID19 cases for Thursday in BC

597 COVID19 cases for Thursday in BC
There are 612 individuals hospitalized with COVID-19 and 102 are in intensive care. In the past 24 hours, nine new deaths have been reported, for an overall total of 2,840.

597 COVID19 cases for Thursday in BC

B.C. heeds devastating climate message: minister

B.C. heeds devastating climate message: minister
British Columbia's environment minister says the province can't afford to wait any longer to confront climate change after last year's devastating fires, floods, slides and heat waves. George Heyman says last year delivered the message that the time to address climate change is now.

B.C. heeds devastating climate message: minister

Canadians organize rallies in support of Ukraine

Canadians organize rallies in support of Ukraine
Demonstrations have been planned in Montreal, Toronto, Edmonton and Vancouver today to denounce the Russian military strike against Ukraine, and the Canada-Ukraine Foundation has launched a fundraiser for humanitarian aid.

Canadians organize rallies in support of Ukraine

Canada brings in stronger sanctions for Russia

Canada brings in stronger sanctions for Russia
The new sanctions will target 58 people and entities connected to Russia, including members of that country's elite and their families, the paramilitary organization known as the Wagner Group and major Russian banks.

Canada brings in stronger sanctions for Russia