Canada exports drive GDP growth to 3.5%

Canada's one million dollar-face value coin, weighing 100kg and made of 99.999% pure gold 4 November 2011 The Canadian dollar has become stronger on Wednesday on the news of increased GDP growth

Canada's annualized GDP grew by 3.5% in the third quarter of 2011, exceeding growth expectations.

Analysts had expected a 3% growth rate after a previous decline in GDP. The growth was led by stronger exports and housing purchases.

The gain was the biggest quarterly growth since 2004, but both domestic demand and personal and government spending grew at a slower pace.

The United States's own GDP grew 2% in the same period.

Jim Flaherty, Canada's finance minister, welcomed the news as he met with investors in New York.

"Canada will continue to show the economic and fiscal leadership that helped us weather the global hardships we have already faced," Mr Flaherty said.

The Canadian dollar hit its highest level against the US dollar in more than two weeks on Wednesday after the news.

But some economists say the current euro crisis will not entirely pass Canada by, especially when a significant portion of growth came from exports.

"Growth was very narrowly based," Derek Holt, vice-president of economics at Scotia Capital, told the Wall Street Journal, adding that would "make the gain temporary in nature in my opinion".

More on This Story

Global Economy

The BBC is not responsible for the content of external Internet sites

More US & Canada stories

RSS

Features

  • John CurticeScotland decides

    Referendum race 'may have got tighter'


  • RihannaCloud caution

    After celebrity leaks, what can you do to safeguard your photos?


  • Cesc FabregasFair price?

    Have some football clubs overpaid for their new players?


  • Woman and hairdryerBlow back

    Would banning high-power appliances actually save energy?


  • Rack of lambFavourite feast

    Is the UK unusually fond of lamb and potatoes?


BBC © 2014 The BBC is not responsible for the content of external sites. Read more.

This page is best viewed in an up-to-date web browser with style sheets (CSS) enabled. While you will be able to view the content of this page in your current browser, you will not be able to get the full visual experience. Please consider upgrading your browser software or enabling style sheets (CSS) if you are able to do so.