Economy Tops Projections

CBJ – The Canadian economy grew at a faster pace than expected in the fourth quarter of 2014 and because of that it’s unlikely the Bank of Canada will alter interest rates.

According to figures released by Statistics Canada, the annualized rate for gross domestic product (GDP) in the fourth quarter came in at 2.4%, compared with a revised 3.2% in the third quarter. Most economists had been forecasting a 2% increase in the fourth quarter.

It’s all but certain the central bank will hold its overnight trendsetting rate at 0.75%.

Economists are optimistic that a stronger U.S. recovery will ultimately boost Canada’s economy, with exports expected to increase.

Household spending was up 2.0% on an annualized basis. Exports of goods fell 2.5% on an annualized basis. Exports of crude oil and bitumen products dropped 6.5%. Exports of refined petroleum products plummeted 36%.