Canadian economy grew 0.2% in February

The Canadian economy grew a modest 0.2 per cent in February, with advance estimates for March indicating little change to the GDP, Statistics Canada said on Tuesday.

The transportation and warehousing sector grew 1.4 per cent, a pace that the data agency said was the largest monthly growth rate since January 2023.

Rail transportation contributed significantly to that sector’s growth in February, eking out a 5.5 per cent gain as it rebounded from a January cold snap. 

Air transportation grew 4.8 per cent as demand for international travel rose, with airlines adding more flights to Asia in the lead-up to the Lunar New Year.

Pipeline transportation rose 1.6 per cent in February, offsetting January’s decline, with crude oil and pipeline transportation rising 3.4 per cent.

Goods-producing industries were essentially unchanged as the mining, quarrying, and oil and gas extraction sector grew and the utilities and manufacturing sectors contracted, according to StatsCan.

Canada’s GDP grew 0.5 per cent in January, helped by a rebound in educational services after public sector strikes ended in Quebec. 

The public sector grew at a slower pace in February (0.2 per cent) after a 1.9 per cent increase the previous month.

More to come.