Canadian Economy posts 5% annual growth

Canada’s economic recovery gathered considerable momentum in the final quarter of 2009, beating market expectations to grow at a 5.0 percent annualized rate on strong consumer spending and exports, Statistics Canada said on Monday.

But the fourth-quarter revival — the strongest growth since 2000 — was not enough to offset the impact of a grueling recession which caused gross domestic product to shrink 2.6 percent overall in 2009 compared with 2008.

Statscan data showed business investment declined sharply in the fourth quarter, and was only partially offset by the effects of government stimulus spending.

Analysts surveyed by Reuters had expected 4.1 percent annualized growth in the fourth quarter. Statscan revised upward its third-quarter growth figure to 0.9 percent from 0.4 percent on an annualized basis.

Reuters

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza