Real gross domestic product (GDP) edged up 0.2% in the fourth quarter of 2023, after falling 0.1% in the previous quarter.
Statistics Canada measured that the Canadian economy experienced annualized growth of 1% in the fourth quarter.
The federal agency attributes the increase in GDP during the three months ended in December to the increase in exports and the decrease in imports. This growth was moderated by the decline in business investment, which fell by 3% due to the reduction in spending on engineering works.
More specifically, Statistics Canada reports that exports of goods and services increased by 1.4% in the fourth quarter in Canada after falling by 0.3% in the third quarter. The growth observed is largely attributable to a 6.2% surge in exports of crude oil and crude bitumen which coincided with sustained crude oil production in Alberta.
Meanwhile, imports of goods and services fell 0.4% in the fourth quarter. This decline, which follows an increase of 0.3% in the third quarter of 2023, is mainly explained by the decrease in imports of intermediate metal products, tires, engines and parts of motor vehicles and motor cars and trucks light.
Furthermore, household spending increased by 0.2% in the fourth quarter, which followed the slight increase of 0.1% in the third quarter. This increase is mainly due to spending on new vehicles as supply chain issues and order fulfillment continue to be resolved.
On the other hand, on an annual basis, residential construction fell by 10.2%; declines were noted in the components of new construction, renovations and ownership transfer costs.