Canada’s economy grew by 0.6 per cent in November of last year, making it the sixth consecutive month of economic expansion prior to the rapid spread of the Omicron variant of the coronavirus, according to GDP numbers released by Statistics Canada Tuesday.
The economy rebounded to pre-pandemic levels, with real GDP 0.2 per cent above its February 2020 level.
While real GDP slowed slightly from October’s 0.8 per cent growth, most sectors experienced economic expansion.
Growth in manufacturing and wholesale had the largest contribution to the rise in GDP in November.
Growth beat consensus expectations of 0.4 per cent, according to TD Economics senior economist James Orlando.
“This was a very solid report as there was a broad increase in output across most industries,” said Orlando.
The economist warned some of the gains made in November were likely slowed in December and January, as the rapid spread of the highly transmissible Omicron variant impacted economic activity. However, Orlando expects GDP to rebound in the coming months.
“Given that we are likely past the worst of the Omicron wave, we expect a strong boost to monthly GDP in February and March,” he said.
Desjardins economist Royce Mendes says the strong growth in November means that fourth quarter GDP likely surpassed the Bank of Canada’s 5.8 per cent forecast.
“As a result, the Canadian central bank remains on track to lift its policy rate in March,” said Royce.