According to data released by Statistics Canada on Wednesday, Canada’s economy grew by 0.8 percent in the first quarter of 2023, showing significant improvement compared to the fourth quarter of 2022.
The GDP growth exceeded market expectations, which anticipated a 0.4 percent increase following the economic slowdown in the previous quarter, ending a streak of five consecutive quarters of growth.
Statistics Canada’s press release highlighted that international trade and household consumption growth slowed, along with a slower accumulation of inventories and declines in housing investment and business investment in machinery and equipment.
Final domestic demand rose by 0.7 percent in the first quarter of 2023 after remaining stagnant in the fourth quarter of 2022.
Exports of goods and services increased by 2.4 percent in the first quarter of this year, following a 0.5 percent rise in the fourth quarter of the previous year.
Imports of goods and services experienced a 0.2 percent growth in the January-March 2023 period, recovering slightly from a 3.3 percent decline in the fourth quarter of 2022.
Canada Has Cut Its Budget Deficit by More than Half in A Year
In addition, Canada has successfully reduced its budget deficit by over half within a year. The budget deficit for the fiscal year 2022/23 decreased from C$95.57 billion to C$41.31 billion, thanks to the post-pandemic economic recovery that boosted after-tax revenues while spending increased.
The Finance Ministry of Canada stated that revenues rose by 8.6 percent between April 2022 and March 2023, reflecting improved revenue flows due to economic growth and the reduced fiscal and economic impact of the pandemic. Program costs decreased by 6.5 percent due to lower transfers to individuals and businesses resulting from the suspension of temporary COVID measures.