Economy grew at an annual rate of 2.5% in Q1: StatCan

Statistics Canada says the Canadian economy grew by 0.1 per cent in February.

The agency’s preliminary estimate suggested a real GDP grew at an annual rate of 2.5 per cent in the first quarter in its latest report.

The figure came in lower than expected by the agency as retail, wholesale trade and  manufacturing all reduced.

Growth was seen in the public sector, professional, scientific and technical services, construction and finance and insurance.

READ MORE: Bank of Canada holds interest rate steady at 4.5%

Statistics Canada altered up its January figure for real GDP to 0.6 per cent.

The economy is expected to plateau in 2023 and potentially enter a recession as high interest rates weigh on businesses and consumers.

The Bank of Canada is holding the key interest rate steady at 4.5 per cent, which is the highest it’s been since 2007.

READ MORE: Annual inflation rate fell to 4.3% in March, lowest level since 2021