The Globe and Mail reports in its Saturday edition that the Canadian economy began January strongly with a 0.4-per-cent rise in real gross domestic product, but early estimates suggest flat growth in February due to harsh winter weather and potential tariffs. A Canadian Press dispatch to The Globe reports that Canadian Chamber of Commerce economist Andrew DiCapua says, "We're really sprinting into a wall." Statscan reported that January's growth was mainly fuelled by a surge in the oil, gas, quarrying and mining sectors, despite a contraction in retail trade. The manufacturing, utilities and construction sectors also saw growth, while the services sector increased by 0.1 per cent.
Mr. DiCapua says upticks in manufacturing and oil and gas extraction over the past two months align with a boost in Canadian exports to the U.S. CIBC economist Andrew Grantham said Friday that the February slowdowns are likely tied to harsh winter weather throughout Canada and the end of Ottawa's sales-tax holiday midmonth. The January increase may be attributed to Canadian businesses preparing for U.S. tariffs, which were frequently threatened before partially taking effect in March. He expects "a clearer negative impact on GDP in March."
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