Statistics Canada says fourth-quarter growth was driven by a 2.3 per cent increase in business investment compared with the third quarter. (SEAN KILPATRICK / THE CANADIAN PRESS)

Economy expands 1.7% in fourth quarter of 2017

Economy expands 1.7% in fourth quarter of 2017 to cap off year of 3% growth

The Canadian economy expanded at a pace of 1.7 per cent over the final three months of 2017, a rate that was below the rapid growth seen in the first half of the year, Statistics Canada reported Friday.

The agency’s latest numbers for real gross domestic product showed the economy grew three per cent for all of 2017, which was a much-stronger pace than 2016 when growth was 1.4 per cent.

The fourth-quarter expansion of 1.7 per cent came in higher than growth in the third quarter, which was revised to 1.5 per cent from 1.7 per cent.

Related: ‘Mega trends’ set to alter economy, society, security

Growth in the fourth quarter was driven by a 2.3 per cent increase in business investment compared with the third quarter, and a 0.5 per cent quarter-over-quarter rise in household spending, the report said.

For all of 2017, the agency said household spending easily made the biggest contribution to growth, followed by inventory and business investment. Exports also grew for the second-straight year with gains in both goods and services.

“Much of this growth was attributable to the first two quarters of 2017, with deceleration observed toward the end of year,” the report said.

The three per cent figure for 2017 matches the projection by private-sector economists that was included in Tuesday’s federal budget. The budget also predicts real GDP growth of 2.2 per cent in 2018 and 1.6 per cent next year.

Statcan revised its real GDP numbers upward for the first and second quarters of 2017.

Related: Bank of Canada hikes interest rate to 1.25%, cites strong economic data

For the first quarter, the estimate was increased to four per cent from 3.7 per cent; for the second quarter, revised growth was 4.4 per cent, up from its initial reading of 4.3 per cent.

By industry throughout 2017, the report said the growth was “widespread” with 18 of the 20 sectors showing increases.

Goods-producing industries expanded 4.6 per cent, compared to two-straight annual contractions of 0.5 per cent in 2016 and 1.7 per cent in 2015. The biggest contribution to growth from the goods-producing industries in 2017 came from natural resources extraction, which expanded 7.8 per cent.

Services industries expanded 2.8 per cent last year for their highest pace of growth since 2011. It was led by a 7.5 per cent boost from the wholesale-trade sector.

Andy Blatchford, The Canadian Press

Like us on Facebook and follow us on Twitter.

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Just Posted

Comox Valley board of education approves facility spending plan

Projects include roofing, sewage system upgrade, gym resurfacing

Vancouver Island’s current COVID-19 case count officially hits zero

Of the 130 recorded Island Health cases, five people have died, 125 recovered

Valley artist gifts B.C.’s health officer with symbolic hummingbird

A special connection brought the piece to Dr. Bonnie Henry’s desk in Victoria

Black Lives Matter events planned for Courtenay

Peaceful gatherings are scheduled for Simms Park Friday and Saturday

Arnott taking medical leave as Comox mayor

Coun. Ken Grant will step in a mayor for time being

‘I’m pissed, I’m outraged’: Federal minister calls out police violence against Indigenous people

Indigenous Minister Marc Miller spoke on recent incidents, including fatal shooting of a B.C. woman

Facing changes together: Your community, your journalists

The COVID-19 pandemic has changed the world in ways that would have… Continue reading

Kelowna Mountie who punched suspect identified, condemned by sister

‘How did he get away with this? How is this justifiable?’

PHOTOS: Anti-racism protesters gather in communities across B.C.

More protests are expected through the weekend

Pair accused of ‘horrific’ assault at Vancouver’s Oppenheimer Park at large

Police say Jason Tapp, 30, and Nicole Edwards, 33, did not show up to meet their bail supervisor this week

No charges to be laid against 22 northern B.C. pipeline protesters

Twenty-two people were arrested in February, but Crown has decided not to pursue charges

Plan in place for BC Ferries to start increasing service levels

Ferry corporation reaches temporary service level agreement with province

B.C. starts to see employment return under COVID-19 rules

Jobless rate for young people still over 20% in May

Most Read