Canadian GDP Climbed 0.8% in Q1
Gross domestic product, income and expenditure, first quarter 2023
Statistics Canada (StatCan) reported Wednesday (5-31-23) that real gross domestic product (GDP) climbed 0.8% higher in 2023Q1 after posting no change in 2022Q4. Positive international trade and growth in household spending were moderated by slower inventory accumulations as well as declines in housing investment and business investment in machinery and equipment. Final domestic demand increased 0.7% in 2023Q1 after remaining flat in 2022Q4.
StatCan reported that a combination of higher borrowing costs and slowing mortgage borrowing saw a 3.9% decline in housing investment in 2023Q1. This marks the fourth consecutive quarterly decline. The decline in investment was widespread: new construction fell 6.0%, renovations declined 2.1%, and ownership transfer costs—which represents resale activity—decreased 1.5%. The decline in new construction was observed in every province and territory except Yukon.
Employee compensation increased 1.7% in 2023Q1, following a 1.3% increase in 2022Q4. This was the largest quarterly growth in compensation of employees since 2022Q2.
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