Economy rebounded a bit in 2021 (Canadian Press image)

By The Canadian Press

Strong growth in fourth quarter

StatCan: Canadian economy grew 4.6% in 2021

Mar 1, 2022 | 7:50 AM

OTTAWA – Statistics Canada said Tuesday the economy grew 4.6 per cent last year, compared with a decline of 5.2 per cent in 2020, the first year of the COVID-19 pandemic.

Growth in the fourth quarter came in at an annualized rate of 6.7 per cent.

Statistics Canada said the largest contributor to economic growth last year was household spending and residential construction as new home construction, resales and renovations increased at near-record levels.

Output was flat at the end of the year as Statistics Canada said real gross domestic product was essentially unchanged in December.

That left the Canadian economy 0.4 per cent above pre-pandemic levels recorded in February 2020.

IN THE COMMUNITY

Firefighters take win over Police Service in Medicine Hat sledge hockey game

8h ago

IN THE COMMUNITY

'Treblemakers' gives learning musicians courage in Medicine Hat

Jan 18, 2025

IN THE COMMUNITY

Diverse personal stories shared at 'Pecha Kucha' in Medicine Hat

Jan 17, 2025

The agency also said in an early estimate that the Canadian economy grew by 0.2 per cent in January.

The January figure came as a bit of surprise for economists who expected a pullback in the month amid the Omicron wave that led to a loss of 200,000 jobs in the month.

Royce Mendes, managing director and head of macro strategy at Desjardins, said the economy likely built on that momentum in February as the country turned a corner on the latest wave of the pandemic, which allowed for businesses to reopen across the country.

The figures came a day before the Bank of Canada’s next scheduled interest rate announcement. The central bank is widely expected to raise its key policy rate on Wednesday.

This report by The Canadian Press was first published Mar. 1, 2022.