Canada’s GDP outpaces US, grows 2.6% in final quarter of 2016
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%.
Real gross domestic product (GDP) rose 0.6% in the fourth quarter. #cdnecon https://t.co/bxqP1hQb0L pic.twitter.com/gEe2MvV9C1
— Statistics Canada (@StatCan_eng) March 2, 2017
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.