The Canadian Statistics Office released today, Friday, data on real GDP growth for March of this year and for the first quarter, which appeared quite mixed, indicating that economic activity in the country continues to be affected during this period.

According to the data, Canada's economy failed to achieve growth in March, which aligned with market expectations that predicted a GDP growth index of 0.0%, while the previous reading for February indicated an economic growth of 0.2%.

On a quarterly basis, the Canadian economy achieved a real GDP growth of 0.4%, compared to the last quarter of last year where economic growth was around 0.2% and was revised down to 0%.

On an annual basis, the annual economic growth data for Canada was extremely negative and below market expectations, with a GDP growth rate of 1.7%, worse than market expectations that indicated a growth of 2.2% during the first quarter of the year, noting that Canada achieved a growth of 1% in the fourth quarter of 2023, which was revised down to only 0.1% growth.

It is worth mentioning that the GDP indicator in Canada measures the change in the value of goods and services adjusted for inflation on a monthly basis. This is the primary and broadest measure of economic activity.

Traders are looking forward to an improvement in the stock market and thus the pace of the economy, as a recovery in business activity means increased corporate profits. Additionally, bond traders are heavily influenced by inflation and improved economic activity, as this improvement may lead to rising inflation. By monitoring this data, investors can understand market movements and their financial portfolios. Positive economic growth data supports the Canadian dollar and vice versa.