🇨🇦❗️Cable FX Macro Weekly Note: Canada Q1 GDP Growth

**As seen in Risk In The Week report 05/26/24,subscribe at cablefxm.co.uk/reports 

The prior quarter saw a rebound in Canadian output to 1.0% from the prior -0.5%, this was above the consensus median of 0.8%. The largest contribution came from exports as the component posted the highest growth since 1Q 2023 at 5.6%. Gross fixed capital formation pulled growth lower for the second consecutive quarter, the metric contracted by 3.8%. The Bank of Canada projects this year's real GDP to rise by 1.5% before accelerating to 2.2% in 2025, economists stand less optimistic and pencil output at 1.0% in 2024.

The desk at CIBC noted a contraction in March's GDP due to weakness in manufacturing, retailing, and wholesaling. CIBC expects the 1Q figure to rise 2.5% vs the consensus of 2.0%, they added that a solid output print should not deter the BoC from delivering a rate cut in June as prices have eased quicker than expected.