Canada’s economy grows faster than expected

The Gazette- Canada’s economy grew at a faster pace than expected in the first quarter of 2010, led by consumer spending, Statistics Canada reported Monday.

Gross domestic product rose at an annualized pace of 6.1 per cent between January and March, the biggest jump since the last quarter of 1999. Growth in the fourth quarter of last year was 4.9 per cent.

Most economists had expected GDP growth of 5.8 per cent in the first three months of 2010.

"Residential investment increased for a fourth consecutive quarter, as did consumer spending on goods and services," Statistics Canada said. "Export and import volumes both rose for a third consecutive quarter, with growth in imports outpacing growth in exports in the first quarter…”

Canada’s economy grows faster than expected

Home prices to hit record: Report

The Globe and Mail- Canada’s housing boom continues to outpace developed countries around the world with housing prices in the fourth quarter up 19 per cent year over year.

A new Scotiabank global real estate  trends report says year-ago comparisons are amplified by the sharp drop in sales and prices at the end of 2008, but still represent a remarkable turnaround in a short time.

The strong performance has carried through into 2010, with sales in the first two months just slightly behind the near-record levels seen in late 2009…

Home prices to hit record: Report – The Globe and Mail

Economy hotter than estimated, Bank of Canada says

Globe and Mail- The Bank of Canada kept its benchmark lending rate at a historic low 0.25 per cent Tuesday, while hinting that policy makers are on closer guard for shifts in the inflation outlook that might force them to rethink their pledge to stay on hold through midyear.

In the statement accompanying Tuesday’s decision, Governor Mark Carney and his rate-setting panel acknowledged that growth and inflation have been hotter than policy makers projected in their January forecast, saying the economy’s 5-per-cent growth in the fourth quarter was “spurred by vigorous domestic spending and further recovery in exports.”

Also, in a nod to the fact core inflation came in at the central bank’s 2-per-cent target in January, sooner than policy makers had anticipated, they sounded a somewhat more hawkish tone on price gains. The central bank said the risks to their inflation outlook are now “roughly balanced,” as opposed to language from previous statements which had said inflation risks were “tilted slightly to the downside…”

Economy hotter than estimated, Bank of Canada says – The Globe and Mail

Canadian economy grows 5%, tops forecasts

Globe and Mail- The Canadian economy expanded by a greater-than-expected 5 per cent in the fourth quarter, raising the likelihood of interest rate hikes later this year.

The country’s gross domestic product grew at the fastest annualized pace since the third quarter of 2000, Statistics Canada said Monday.

The economy’s burst boosts the odds of a string of rate hikes in the second half of the year. The Bank of Canada announces its interest-rate decision tomorrow, and while rates are on hold for now, the tone of the announcement could well acknowledge that growth is picking up speed at a faster pace than anticipated.

“This report shouts strength, and increases the odds the Bank of Canada will begin to hike interest rates in July and stay on that path in the following decisions,” said Douglas Porter, deputy chief economist at Bank of Montreal…

Canadian economy grows 5%, tops forecasts – The Globe and Mail

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