Canada: Economic growth is expected to improve moderately in Q1 2019 - Wells Fargo

Canadian GDP data will be released on Friday. Analysts at Wells Fargo, expected a reading of 0.8% (annualized, quarter-over-quarter), in line with market consensus. 

Key Quotes: 

“Q4 GDP rose just 0.4% quarter-over-quarter annualized, while final domestic demand was even softer, contracting at a 1.5% pace. While employment growth has been sturdy so far in 2019, retail sales data point to still subdued consumer spending in Q1, while mixed manufacturing sales also hint at only modest improvement in investment spending. That said, higher oil prices could impart a modest positive impulse on Canada’s economic growth.”

“The consensus is for Q1 GDP growth to rise to 0.8% quarter-over-quarter annualized, more than the 0.3% pace forecast from the Bank of Canada in its latest Monetary Policy Report. Speaking of the central bank, the Bank of Canada is widely expected to keep its policy interest rate at 1.75% given the sluggish growth backdrop and CPI inflation that is close to the central bank’s target.”