Canada's Economic Growth in Q4 2024

In an unexpected turn of events, Canada's real gross domestic product (GDP) experienced a 0.6% increase in the fourth quarter of 2024, as reported by Statistics Canada on Friday. This growth was primarily fueled by higher household spending, a surge in exports, and increased business investment.

Per Capita GDP and Yearly Performance

On a per capita basis, GDP saw a modest increase of 0.2%, marking a reversal from the 0.1% decline observed in the previous quarter. However, the full year painted a different picture, with GDP per capita dropping by 1.4%, continuing a trend of decline for the second consecutive year.

Exports and Imports Dynamics

The export sector rebounded with a significant 1.8% increase, driven by crude oil, gold, and automobiles. Meanwhile, imports also grew, albeit at a slower pace of 1.3%. Despite the overall economic growth, the pace of wage increases slowed, and household savings rates decreased to 6.1% from 7.3% in the previous quarter.