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Canada’s Economy Grows 6.7% Annualized Despite Omicron Lockdowns

  • Preliminary data for January suggest surprising resilience
  • Bank of Canada set to begin raising interest rates this week
Residents wait in line outside a vaccination clinic in Montreal on Jan. 12.

Residents wait in line outside a vaccination clinic in Montreal on Jan. 12.

Photographer: Graham Hughes/Bloomberg
Updated on

Canada’s economy grew at a robust pace in the fourth quarter and was more resilient than expected in January, teeing up a Bank of Canada interest-rate hike this week.

Output expanded by an annualized 6.7% in the three months through December, led by business spending, Statistics Canada reported on Tuesday in Ottawa. That followed growth of 5.5% in the third quarter, bringing output back to pre-pandemic levels. Economists were anticipating a 6.5% advance for the economy in the fourth quarter.