Canada: GDP bounced back in November – NFB

According to a report released on Friday, Canada’s real GDP rose 0.1% in November and 1.5% compared to a year earlier.  Krishen Rangasamy, analyst at the National Bank of Canada explained Q4 GDP growth is tracking flat. 

Key Quotes:

“Canadian GDP data for November was better than expected. Expectations had been lowered amid the CN rail strike, Keystone pipeline rupture and potash mine closure in Saskatchewan.”

“A colder-than-usual November boosted utilities output, something that’s likely to reverse. But there were also more lasting gains including in the construction sector ─ which reflected a resurgent housing market ─, education, health and professional services.”

“We expect output to increase further in December thanks in part to CN operations and oil shipments via the Keystone pipeline returning to normal. But even assuming zero growth in December, 2019Q4 Canadian GDP is tracking close to flat, i.e. near the Bank of Canada’s estimate of +0.3% annualized growth for the quarter.”