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

Click to play video: 'Freeland confident in Canada’s economy amid global supply chain issues' Freeland confident in Canada’s economy amid global supply chain issues
Canada's Deputy PM Chrystia Freeland was asked if Canadians should be worried about the availability of goods heading into the holiday season on Thursday, and expressed her confidence in Canada's economy. "I think Canadians should be confident in Canada. They should confident in themselves. They should be confident in the resilience our country has demonstrated and confident in the robustness of our economic recovery – Oct 14, 2021

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.

Read more: Federal budget needs to focus on post-COVID economic growth, Freeland says

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.

Story continues below advertisement

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.

Sponsored content