Real gross domestic product (GDP) increased 0.4% in the first quarter, after posting no change in the fourth quarter of 2023 (revised down from 0.2%). In the first quarter of 2024, higher household spending on services was the top contributor to the increase in GDP, while slower inventory accumulations moderated overall growth, reported Statistics Canada on Friday.
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“Imports of goods and services edged up 0.4% in the first quarter, following a 0.2% increase in the fourth quarter of 2023. Higher imports of clothing, footwear and textile products led the increase in the first quarter of 2024, followed by waste and scrap of metal and glass, as well as electricity. These gains were partially offset by declines in imports of passenger cars and light trucks amid lower global production.
“The ratio of the price of exports to the price of imports—the terms of trade—fell 1.2% in the first quarter. The terms of trade have fallen in six of the last seven quarters.”
“Investment income (+4.0%) grew strongly in the first quarter of 2024 due to widespread gains from interest-bearing instruments and dividends. Higher income households tend to benefit more from interest rate increases through property income received,” it said.
“Household property income payments, comprised of mortgage and non-mortgage interest expenses, rose 3.4% in the first quarter; among the lowest increases seen since the first quarter of 2022, when the Bank of Canada’s series of policy rate increases began. Lower income households tend to be more negatively affected by interest rate increases through property income paid.
“In the first quarter of 2024, corporate incomes fell 4.9%, after rising 2.4% in the fourth quarter of 2023. The lower gross operating surplus of non-financial corporations was fuelled by decreases in the oil and gas sector, where price declines reduced incomes. Gross operating surplus of financial corporations edged up 0.3% in the first quarter of 2024, entirely attributable to charter banks.”
Mario Toneguzzi
Mario Toneguzzi is Managing Editor of Canada’s Podcast. He has more than 40 years of experience as a daily newspaper writer, columnist, and editor. He was named in 2021 as one of the Top 10 Business Journalists in the World by PR News – the only Canadian to make the list. He was also named by RETHINK to its global list of Top Retail Experts 2024.
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