Close X
Sunday, November 24, 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

Emergency powers end but questions linger

Emergency powers end but questions linger
Prime Minister Justin Trudeau announced Wednesday the extraordinary, time-limited powers would be pulled back now that the immediate crisis is over. They were brought in last week to respond to protests and blockades against COVID-19 restrictions and the Liberal government.

Emergency powers end but questions linger

Attempted robbery in Richmond involves snatching of a senior's purse

Attempted robbery in Richmond involves snatching of a senior's purse
One of the occupants of the SUV tried pulling her inside the vehicle and stealing her purse. The suspect or suspects then fled in this vehicle after their attempt was unsuccessful.

Attempted robbery in Richmond involves snatching of a senior's purse

A look at the Omicron subvariant BA.2

A look at the Omicron subvariant BA.2
BA.2 was detected in Canada as early as December, according to Health Canada data, but a report last week from the B.C. COVID-19 modelling group suggests the newer Omicron strain could be spreading faster in parts of the country than the current dominant version, BA.1.

A look at the Omicron subvariant BA.2

Alberta budget set to rebound on high oil prices

Alberta budget set to rebound on high oil prices
 It's budget day in Alberta, and Premier Jason Kenney says there will be a massive infusion of money for the health-care system. Kenney says the COVID-19 pandemic has exposed a system that has too few hospital beds, labs and intensive care spaces.

Alberta budget set to rebound on high oil prices

Trudeau condemns Russia's attack on Ukraine

Trudeau condemns Russia's attack on Ukraine
Trudeau said he would be meeting Thursday with G7 partners and would work quickly with NATO and Canada's allies "to collectively respond to these reckless and dangerous acts, including by imposing significant sanctions in addition to those already announced."

Trudeau condemns Russia's attack on Ukraine

Ottawa approves made-in-Canada COVID vaccine

Ottawa approves made-in-Canada COVID vaccine
Health Canada says its effectiveness and safety in those under 18 and over 64 have "not yet been established." Clinical trials suggested the vaccine was 71 per cent effective in protecting against COVID-19 one week after the second dose. The dosing schedule is 21 days apart.

Ottawa approves made-in-Canada COVID vaccine