Economics

Canada’s Economy Powers Into 2021 Despite Covid Restrictions

  • GDP grows 9.6% in 4th quarter, on pace for 0.5% January gain
  • Inventory-driven surge prompts upward revisions for recovery
Photographer: Christinne Muschi/Bloomberg
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Canada’s economy is showing surprising strength as businesses stock up on inventories in anticipation of a super-charged recovery this year.

Gross domestic product expanded at a 9.6% annualized rateBloomberg Terminal in the fourth quarter, according to a preliminary estimate released Tuesday by Statistics Canada in Ottawa. That’s much faster than the 7.3% median forecast in a Bloomberg survey. A flash estimate from the agency showed GDP on track to grow 0.5% in January, defying expectations for a contraction to start the year.