The Canadian economy has picked up momentum in the early stages of 2023 and avoided slipping into a recession, despite the highest interest rates in more than 15 years.
On the other hand, strong domestic demand could complicate the Bank of Canada’s efforts to bring inflation back to 2 per cent. The hospitality sector enjoyed a 4 per cent jump in activity that month. The transportation and warehousing industry rose 1.9 per cent, after poor weather conditions in December. Mining, oil and gas extraction expanded by 1.1 per cent, bouncing back from unplanned maintenance in December and other temporary setbacks.
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