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

Langley teacher who screamed at, grabbed elementary students suspended

This is the second four-month suspension for the Langley teacher.

Langley Thunder player named WLA Rookie of the Year

Tyler Pace had a great year in his first full season for the Thunder.

Odd Thoughts: Sharing making everything right

Langley resident Bob Groeneveld on having a cuppa is about more than just enjoying a hot drink.

Langley What’s On: Aug. 16, 2018 edition

Submit Langley events: LangleyAdvance.com/add-event or news@langleyadvance.com (subject: What’s On).

Serious collision in South Surrey

One to hospital with serious injuries; 16 Avenue remains closed

‘Queen of Soul’ Aretha Franklin has died

Publicist Gwendolyn Quinn reports Franklin passed Thursday at 9:50 a.m. at her home in Detroit

5 to start your day

RCMP evict Kinder Morgan protest camp, two girls go on a nighttime bus adventure and more

Italy says death toll will mount in Genoa bridge collapse

Authorities worried about the stability of remaining large sections of a partially collapsed bridge evacuated about 630 people from nearby apartments.

Former CIA Director: Trump worked with Russians and now he’s desperate

In an opinion piece in The New York Times, John Brennan cites press reports and Trump’s own goading of Russia during the campaign to find Democrat Hillary Clinton’s missing emails.

Church sex scandal: Abuse victims want a full reckoning

Since the crisis exploded in Boston in 2002, dioceses around the country have dealt with similar revelations of widespread sexual abuse.

Baloney Meter: is flow of asylum seekers at Canada-U.S. border a ‘crisis’?

“I think any time you have a government that allows 30,000 people over the course of a short period of time to come into Canada illegally, the impact that that has, that is a crisis,” said Conservative Leader Andrew Scheer.

B.C. RCMP say Kinder Morgan protest camp to be dismantled today

RCMP say they will enforce a court injunction today and remove Trans Mountain pipeline protesters who have been camped outside a Kinder Morgan terminal in Burnaby.

VIDEO: Baby in hospital after truck crashes into Surrey home

No official word on the infant’s condition, but police say the 57-year-old man who was driving the truck is in custody

Altidore nets 3 as Toronto drubs Whitecaps 5-2

Vancouver falls 7-4 on aggregate in Canadian Championship final

Most Read