By Barry Ellsworth
TRENTON, Canada (AA) – Canada’s economy took an unexpected upturn of 2.2% as companies strove to stockpile inventory in the US and beat tariffs, according to the latest figures from Statistics Canada (Statcan) released Friday.
The increase was mainly driven by exported goods, which were up 1.6% in the first quarter thanks to a bump in shipments of passenger vehicles and industrial machinery and parts.
However, the Bank of Canada and economists expect brakes will be applied to growth in the second quarter, coming to full stop or contracting, the Financial Post reported Friday.
It is unclear how Prime Minister Mark Carney’s fiscal stimulus package, as well as the Bank of Canada’s continuation of rate cuts, could offset the economic blow posed by US President Donald Trump’s tariffs.
The 2.2% gross domestic product (GDP) in the first quarter represents a slight growth up from 2.1% in the fourth quarter of 2024.