The Canadian economy grew 2.5 per cent at an annual rate in the first quarter, the fastest pace of growth in over a year. Strong Real GDP growth was helped by a 6.2 per cent annualized increase in exports which helped offset slower household consumption and residential investment.
While the Canadian economy grew at a healthy rate in the first quarter, the slowdown in residential construction, and household spending, as well as restraint in government expenditures, will have to be offset by stronger exports and business investment. While exports surprised to the upside in the first quarter, business investment was basically flat. We expect growth to moderate through the remainder of 2013, with the Canadian economy ultimately expanding around 1.7 per cent this year.