Real gross domestic product (GDP) rose 0.7% last March in Canada and 0.8% in the first quarter of the current year, Statistics Canada announced on Tuesday.
The Canadian economy grew at an annual rate of 3.1% in the first quarter.
Both industries producing services and producing goods recorded increases in March, of 0.6% and 0.9% respectively, as a result of increases observed by the federal agency in 14 of the 20 sectors of activity.
In March, industries directly dealing with the public continued to recover following declines associated with public health measures put in place to limit the spread of the Omicron variant of the COVID-19 virus.
The hotel, entertainment and leisure sectors have grown sharply
After jumping 14.3% in February, the accommodation and food services sector rose 10.9% in March, while accommodation services rose 17.3%.
Two months ago, the arts, entertainment and recreation sector grew by 13.5%, its biggest revenue since July 2020.
As for the construction sector, it grew by 1.2% in March, mainly thanks to residential construction, which rose 1.8%. Manufacturing rose 0.9% in March and surpassed its activity level seen in February 2020, before the pandemic.
For a 0.8% increase in GDP for the first quarter as a whole, Statistics Canada attributed it mainly to increased business investment and household consumption. However, the growth observed in the first quarter was weaker compared to the two previous quarters, due to the decrease in the volume of international exports.
In the first quarter of 2022, investment in residential construction rose 4.3%, mainly due to growth of 9.3% in renovations and 4.6% in resale costs. Household spending rose 0.8%, despite restrictions limiting capacity in stores and services across Canada.
Statistics Canada also noted that employee compensation rose sharply in the first quarter, by 3.8% on a nominal basis, after recording a 2% increase in the fourth quarter of 2021. Not to mention the growth recorded in the third. quarter of 2020, this is the largest quarterly increase in employee compensation since the second quarter of 1981.
Finally, Statistics Canada wrote that preliminary information indicates that real GDP rose 0.2% in April.
Source: Radio-Canada
