GDP growth of 0.5% in January, according to Statistics Canada

The Canadian economy returned to growth in January despite the slowdown caused by rising interest rates.

Economic growth resumed in January, after registering a slight contraction in December, Statistics Canada said on Friday.

Gross domestic product ( GDP) grew by 0.5% in the first month of the year, after contracting by 0.1% in the last month of 2022, the federal agency said.

Statistics Canada's preliminary forecast for the month of February foresees growth of 0.3%, but it reminded that this figure would be revised between now and its official publication, in a month.

January's growth was driven by wholesale trade, transportation and warehousing, mining, quarrying, and mining. extraction of oil and natural gas. These were all rebounding after falling in December.

Wholesale trade rose 1.8% in January, supported by machinery, equipment and supplies, while the mining, quarrying, and oil and natural gas extraction sector rose 1.1% after falling 3, 3% in December.

The transportation and warehousing sector grew 1.9% in January, more than offsetting its decline of 1.1 % of December, which had been attributed to poor weather conditions.