Even with the stalled growth in February, Canada is still on pace to have a strong first quarter, with annualized growth estimated to be just below 4 percent. That would likely be the fastest in the Group of Seven. At the same time, caution prevails. At a rate decision two weeks ago in Ottawa, the Bank of Canada revised up growth projections for 2017, but cut them for 2018 and raised questions about the sustainability of Liquid Chalk|Canada the rebound and the countrys long-term growth outlook. Word on the Street Nick Exarhos, CIBC: Februarys 2.5% year-on-year growth suggests that meaningful progress has been made in closing the output gap. However, todays figures also point to a Q2 deceleration, with growth waning into the end of the first quarter Benjamin Reitzes, BMO: After averaging 0.5% growth in the three months to January, the Canadian economy took a breather in February. While this might worry some, the prior pace was unsustainable and some payback is reasonable. Indeed, with GDP up 2.5% y/y, the best in two years, the economy remains headed in the right direction. Now, we just have to hope that Canada-U.S. trade issues and/or mortgage market stress doesnt derail the broader momentum. Derek Holt, Scotiabank: Q1 is shaping up to post reasonably genuine growth. There are nevertheless important cautions on the durability of the monthly growth.
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