Canadian Economy Growing

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By Elli Davis, March 2, 2010

Way up by Nate Steiner

The annualized rate of Canadian GDP rose by 5 percent in the fourth quarter of 2009. That is higher than expected, as many economists predicted about 4 percent growth. According to the announcement of Statistics Canada from yesterday(Monday), the increase in consumer spending, increased exports and a strengthening housing market helped the rise.

From November to December, the GDP increased by 0.6 percent, which was already the fourth month of growth in a row. This rise was also higher than it was widely predicted. As for real GDP, it grew by 1.2 percent in the fourth quarter of last year.

There was a high, 7.1 percent rise in new housing construction – that actually means the first quarterly gain since 2007. Final domestic demand grew by 1.1 percent and spending on durable goods rose by 2.6 percent. Exports of goods and services went up by 3.7 percent. There was a decrease in investment in plant and equipment by 2.3 percent, though.

Our economy is getting better and better, isn't it just great? I don't want to jinx it, but so many consecutive gains must mean something. We are on a good way.