Issue 18-45 Quarterly & Annual Gross Domestic Product (GDP)

March 5, 2018

Quarterly GDP Growth

The Canadian economy continued to expand in the fourth quarter of 2017, with real GDP growing (+0.4%, seasonally adjusted) at the same rate as in the third quarter.

Final domestic demand (household, business and government spending on goods and services) advanced 1.0%. Business spending on fixed capital formation was up (+2.3%) for a fourth straight quarter, with solid growth attributable to investment in residential (+3.2%) and non-residential structures (+1.3%) and machinery & equipment (+3.0%). Investment in intellectual property was unchanged (+0.0%) from the third quarter. Government investment expenditures also raised (+2.5%). Household spending grew 0.5%, while government final consumption expenditures increased 0.7%.

Exports of goods and services were up 0.7%, following a 2.7% decline in the previous quarter. At the same time, imports rose 1.5%; this was a fourth consecutive quarterly increase.

Producers added $14.2 billion in inventories, following a $17.0 billion increase in the third quarter.

Annual GDP Growth

During 2017, the Canadian economy expanded 3.0%, posting the highest annual increase in real GDP since 2011. Final domestic demand (household, business and government spending) rose 3.0% and business investment in fixed capital advanced 2.6%. Household (+3.5%) and government (+2.2%) spending on goods and services, together with rising exports (+1.0%) provided a boost to overall economic growth, which was only partly offset by rising imports (+3.6%).

Source: Statistics Canada