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- Canada: Annualized real GDP expands 3.1% in Q1 vs. 2.5% expected
Canada: Annualized real GDP expands 3.1% in Q1 vs. 2.5% expected
- Canadian economy grew at a stronger pace than expected in Q1.
- USD/CAD stays in positive territory above 1.3600 after the data.
Canada's real Gross Domestic product (GDP) grew at an annual rate of 3.1% in the first quarter, Statistics Canada reported on Wednesday. This reading followed the 0.1% contraction recorded in the last quarter of 2022 and came in better than the market expectation for an expansion of 2.5%.
On a quarterly basis, real GDP expanded by 0.8%, compared to analysts' estimate of 0.4%.
"Favourable international trade and growth in household spending were moderated by slower inventory accumulations as well as declines in housing investment and business investment in machinery and equipment," Statistics Canada explained in its publication.
Market reaction
USD/CAD retreated modestly from daily highs with the immediate reaction to this report and was last seen trading at 1.3638, gaining 0.25% on the day.
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