Canada’s GDP grew 0.2% in January

Statistics Canada say the real gross domestic product continues to rise for the eighth month in a row.

Across the country, the goods-producing industries increased 0.8 per cent at the start of 2022, but services-producing industries remained stagnant due to the effects of the Omicron variant.

“Residential building construction grew 4.3% in January more than offsetting the previous two months of contraction. The growth in January—the largest monthly growth since March 2021—was broad-based, with home alterations and improvements along with apartment-type construction leading the way,” according to the Statistics Canada report released Thursday.

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Food services and drinking places took a 10 per cent hit due to decreased activity.  Accommodation services were also down significantly, by 15 per cent, as “a lower number of international travellers entering Canada and reduced domestic travel in January, traveller accommodations contracted for the first time since May 2021.”

Statistics Canada also reported the arts, entertainment and recreation sector dropped 10 per cent in January, the largest decline since April 2020, as many facilities faced restrictions and closures due to the Omicron variant.

“Performing arts, sports and heritage institutions were down 9.5% in January as attendance at cultural and sporting events was greatly reduced. Professional sports games took place in either empty or partly empty arenas and stadiums across the country in January,” the agency said.

But the construction sector grew for the third time in four months.

Statistics Canada estimates the economy grew 0.8 per cent in February, as many sectors rebounded. The official report for February will be released at the end of April.

With files from The Canadian Press