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.

Just Posted

Crown drops one Vernon assault trial against Curtis Sagmoen

Curtis Wayne Sagmoen will still stand trial on one count of assault causing bodily harm in December.

Temperature records broken across the Okanagan

Bob Marley said it best: The sun is shining and the weather is sweet

Kelowna’s young professionals wary of federal incentives for millennial homebuyers

A few professionals are skeptical that the federal budget announcements will help young people

West Kelowna man, Yorkshire terrier chased by coyote

Animal sightings have been reported around the Central Okanagan

‘Zero’ effort being made to tackle invasive grey squirrels in Kelowna parks

Invasive grey squirrels have taken over the Okanagan

After mosque attacks, New Zealand bans ‘military-style’ guns

The gunman killed 50 in a Christchurch mosque

ICBC shifts to Alberta model, with higher rates, private insurers say

Minor injury cap, court restrictions take effect April 1 in B.C.

Trans woman hopes funding cut will send message to B.C. rape crisis group

Rape Relief does not turn transgender women away and often connects them to other services, group says

Mayor calls on South Okanagan-Similkameen residents to voice concerns on Air Canada changes

Mayor is calling on all residents in the South Okanagan-Similkameen to voice opinions

VIDEO: Men strut their stuff in Underwear Show for Penticton triathlete

Clients of Okanoggin Barbers strutted their stuff to raise funds for Ironman athlete Jen Annett

South Okanagan to host major national golf event

The Osoyoos Golf Club hosts the Canadian Women’s Mid-Amateur and Senior Championships

Having phone within sight while driving does not violate law: B.C. judge

The mere presence of a cell phone within sight of a driver is not enough for a conviction, judge says

B.C. lottery winner being sued by Surrey co-workers

They claim he owes them $200,000 each, in a lawsuit filed in B.C. Supreme Court in Vancouver

Most Read