The Canadian economy grew 6.7% in the fourth quarter on an annualized basis, beating expectations, with growth likely accelerating in January led by the performance of sectors including retail, construction and finance, Statistics Canada data showed on Tuesday.
A preliminary estimate for January showed GDP mostly likely rose 0.2%, after remaining unchanged in December. Analysts surveyed by Reuters had expected a gain of 0.1% in December and 6.5% in the fourth quarter.
The strong fourth-quarter print came in above the Bank of Canada’s own January forecast of a fourth-quarter gain of 5.8%. The central bank is broadly expected to raise its key interest rate to 0.50% when its meets on Wednesday.
The Canadian dollar steadied after the data, trading at 1.2680 to the greenback, or 78.86 U.S. cents.
(Reporting by Julie Gordon in Ottawa and Ismail Shakil in Bengaluru and additional reporting by Fergal Smith in Toronto; Editing by Edmund Blair and Andrea Ricci)
