Statistics Canada: Economy grew at 1.7% annualized rate in Q1 [Video]

Canadian economic growth came in slower than expected for the first quarter, strengthening the case for a possible interest rate cut by the Bank of Canada next week.

Statistics Canada said Friday the economy grew at an annualized rate of 1.7 per cent in the first three months of the year. It also revised its reading for growth in the fourth quarter of 2023 downward.

The agency said growth in the last three months of 2023 was at an annualized rate of 0.1 per cent, compared with its initial report of an annualized rate of one per cent.

The report is the last major economic data point before the Bank of Canada’s interest rate decision next week. The central bank had been expecting an annual growth rate of 2.8 per cent for the first quarter.

Tu Nguyen, economist at tax and consulting firm RSM Canada, said the GDP report combined …