Canada’s GDP outpaces US, grows 2.6% in final quarter of 2016

Mar 2 2017, 3:56 pm

Canada’s economic growth ended with a bang in 2016.

Outperforming the US, the Canadian GDP in the fourth quarter rose to 2.6%, according to Statistics Canada. Meanwhile, the US’s grew 1.9% during the same quarter.

Household consumption was the largest increase of GDP growth, with a 0.6% increase driven by durable goods and spending on financial services such as mutual funds and stock commissions. Investment in housing also increased by 1.2%

Statistics Canada

While increase in exports rose slightly by 0.3%, business investment decreased by 2.1%, following a 0.5% decline during the third quarter.

But where business decreased, household disposable income rose in 2016. Stats Canada reported a 1.5% increase to household disposable income, and a household saving rate boost to 5.8% from 5.5%.

Compensation of employees rose 1.4%, which lead the growth in disposable income. Wages and salaries were up 1.4%, with increases in both services (+1.5%) and goods-producing (+1.1%) industries.

Overall, Canada’s GDP rose 1.4% in 2016, compared to 0.9% overall growth in 2015.

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