OTTOWA, Ontario, June 1 (UPI) -- Canada's economy grew 2.4 percent in first-quarter 2004, exceeding analyst forecasts, the Wall Street Journal reported Tuesday.
Economists had predicted first-quarter (January through March) growth of about 2 percent after last week's release of strong retail and wholesale sales data.
In March, Canada's gross domestic product soared 0.7 percent over February, its biggest monthly gain since September of 2003. Another important economic indicator, final domestic demand, also rose 1.2 percent in first-quarter 2004, twice its growth rate for fourth-quarter 2003, due to robust consumer spending and more business investment.
But Canada's economy is still growing at a slower rate than the United States, which saw economic growth of 4.4 percent during first-quarter 2004.
Canada's central bank has cut interest rates five times since last summer to boost its economy. Now that the desired effect has been achieved, the Bank of Canada is expected to begin raising rates, likely by the end of 2004.
