Canada: Real GDP expands by 0.7% MoM in March versus 0.5% forecast

• Real GDP expanded at a pace of 0.7% MoM in March, above expectations. 
• However, the annualised quarterly pace of growth in Q1 was below expectations. 
• The loonie seemed to weaken a tad initially in response to the data.  

Canadian real GDP expanded at a pace of 0.7% MoM in March, according to the latest data release by Statistics Canada on Tuesday. That was above the median economist forecast for a 0.5% MoM pace of expansion but down from February's 0.9% MoM growth rate. 

Meanwhile, the annualised quarterly pace of GDP growth in Q1 in Canada came in at 3.1%, well below the median economist forecast for a growth rate of 5.4% and down from Q4 2021's annualised quarterly growth rate of 6.6%. 

Market Reaction

The loonie seemed to weaken a tad initially in response to the data.