Canada's economy had a rousing finish to 2014, beating even its larger neighbour to the south.
Figures released this morning by Statistics Canada showed our gross domestic product expanded by 0.6% in the final three months of 2014, a bit slower than the pace seen in the previous quarter but better than what analysts were expecting.
The agency said exports of goods and services fell 0.4% between October and December after increasing 2.2% in the previous three months. Much of the slowdown in exports was tied to the price of oil, as Canadian energy companies pumped out far less in response to plunging prices.
Overall, the 0.6% quarterly expansion translates into a 2.4% annual rate, which is stronger than the U.S.'s 2.2% growth during the same period.
The 2.4% annual rate is slower than the 3.2% expansion forecast seen during the fall of 2014, but still better than what economists had been expecting.
Experts at the Bank of Nova Scotia said the GDP data is another sign the Bank of Canada will stand pat on rates when it announces its next policy decision tomorrow, its first since surprising everyone by cutting rates at the end of January.
Last week's inflation was also higher than the central bank had predicted — further dampening expectations of another cut.
