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Canadian Economics: What You May Have Missed This Week

Published 2023-03-05, 01:31 p/m
Updated 2023-03-05, 01:32 p/m
© Reuters.

© Reuters.

By Ketki Saxena 

Investing.com – What you may have missed this week in Canadian economics 

Canadian GDP: The Canadian economy stalled in the fourth quarter of last year, with real gross domestic product remaining unchanged in the Q4 2022 after five consecutive quarters of growth. Statistics Canada’s preliminary estimate had predicted 1.6% annualized growth for the quarter. In December, Canada's total economic output declined by 0.1% from November's level. shows that the Canadian economy is slowing more than expected following eight consecutive rate hikes from the Bank of Canada. At its most recent policy meeting, the Bank of Canada announced a conditional pause on rate hikes, with further moves being more data on incoming data, of which today’s GDP reading is a key indicator.

The S&P Global Canada Manufacturing Purchasing Managers' Index (PMI): Canadian manufacturing activity expanded in February as measures of output and new orders both rose to nine-month highs, while inflation pressures continued to ease. The S&P Global (NYSE:SPGI) Canada Manufacturing Purchasing Managers' Index (PMI) rose to a seasonally adjusted 52.4 in February from 51.0 in January, its highest level since July. Before January's reading, the index had been below 50, signifying a contraction in manufacturing, for five consecutive months.  The measure of input prices fell to its lowest level since July 2020 at 57.9, down from 58.6 in January, while the future output measure was at 61.6, its highest since July.

Toronto Home Prices: The price of a home in the Toronto area rose for the first time in 11 months, up 1.1% to $1.09 million in February on a non-seasonally adjusted basis, according to data from the Toronto Regional Real Estate Board. However, benchmark prices in Toronto remain about 18% below their peak last year. The data indicated some signs of increasing buyer interest, as sales rose 8.5% from January, to  5,224 transactions - still about half the number of transactions seen in February last year. New listings were 41% lower than a year earlier.  

Vancouver Home Prices: Housing prices in Vancouver fell 9.3% year over year in February to $1,123,400,  the Real Estate Board of Greater Vancouver (REBGV) reported today. However, February prices rose 1.1% month on month compared to January.. Sales in February rebounded sharply, up 76.9% from January, but were down 47.2% from the year before. The number of homes for sale were up 16.7% year over year, and 5.2% from January. 

BC Budget: The British Columbia budget for 2023 was tabled this week, with a focus on building more homes, inflation relief measures, and healthcare - with BC becoming the first Canadian province to offer free prescription contraception. Key tax measures include a permanent increase to the B.C. Family Benefit effective July 1, 2023, an increase to the Climate Action Tax Credit effective July 1, 2023, and the introduction of a Renter’s Tax Credit of up to $400 annually, effective January 1, 2023, for eligible households. No changes to corporate or personal income tax rates were announced.

Alberta Budget: Alberta’s provincial budget was also tabled this week, with key measures the continuation of fuel tax relief from January 1 to June 30, 2023, suspending the entire fuel tax of 13 cents per litre on gasoline and four cents per litre on marked gasoline, a new corporate non-refundable tax credit worth 12% of eligible capital investments of at least $10 million made on or after February 7, 2023. No corporate or personal income tax rate changes were announced.

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