Community > Member News > Fourth Quarter 2009 Gross Domestic Product Increases 1.2 Percent
Fourth Quarter 2009 Gross Domestic Product Increases 1.2 Percent
March 01 2010
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smmresas
(Excerpt from Statstics Canada's The Daily 1 March 2010.)
Real gross domestic product (GDP) increased 1.2% in the fourth quarter, the largest quarterly increase since the third quarter of 2000. Final domestic demand advanced 1.1% as consumer spending continued to grow. Real GDP increased 0.6% in December, a fourth consecutive monthly advance. Additional data tables are available in the Canadian Economic Accounts Quarterly Review.
For a third consecutive quarter, growth in final domestic demand was led by increases in personal expenditures, government expenditures, and investment in residential structures. Export and import volumes both rose for a second consecutive quarter, with growth in exports outpacing that of imports in the fourth quarter.
Goods-producing industries rose 2.1% in the fourth quarter, the first quarterly gain since the second quarter of 2007. Production in mining and oil and gas extraction rebounded in the fourth quarter, while manufacturing and construction strengthened. Service-producing industries advanced 0.8%, as wholesale trade and the activities of real estate agents and brokers continued to grow at a strong pace. The public sector (health, education and public administration combined) as well as the finance and insurance sector also increased.
Expressed at an annualized rate, real GDP grew 5.0% in the fourth quarter, up from 0.9% in the third quarter. This compared with a 5.9% fourth-quarter rate of increase in the US economy.
Consumer spending continues to rise
Consumer spending on goods and services advanced 0.9% in the fourth quarter, the same as the increase recorded in the third quarter. Households increased their spending on durable goods (+2.6%), particularly for motor vehicles and household furniture and equipment. Spending on services grew 1.0%, after advancing 0.8% in the third quarter.
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