Canada’s economy grew 0.6% in November before Omicron took hold

Statistics Canada says real gross domestic product rose 0.6 per cent in November before Omicron COVID-19 cases began to surge at the end of the year.

The growth in November pushed the GDP above pre-pandemic levels by 0.2 per cent, the agency says.

The agency also says its initial estimate for December suggests real GDP was essentially unchanged for the final month of 2021 to bring growth to 4.9 per cent for the full year.

The result, which won’t be finalized until next month, is a turnaround from 2020 when the Canadian economy suffered its worst year on record as output shrank by 5.4 per cent.

Driving to the finish line of 2021, Statistics Canada says that it estimates the economy grew at an annualized rate of 6.3 per cent in the fourth quarter.

The Bank of Canada warned last week that it expects Omicron to dampen spending in the first quarter, and slow growth to an annualized rate of about two per cent.