BDC Monthly Economic Letter 
June 2022

The Canadian economy remains strong

Unlike many other major economies, notably the United States, Canada made it through the first quarter of 2022 without much difficulty.

Although weaker international trade weighed on growth, increased spending by households and businesses offset this decline. Overall, the Canadian economy grew at an annualized rate of 3.1% during the quarter, a strong performance even though many analysts had expected better.

Demand is robust

Businesses are likely to have plenty to keep them busy as domestic demand remains strong. Household spending rose at an annualized rate of 3.4% in the first quarter.

While demand for services continues to recover, consumption of goods still leads the way. Inflationary pressures on goods, supply issues and easing of pandemic-related health measures should begin to benefit services in the coming months. Retail sales net of inflation grew by an anemic 0.2% in the first quarter, according to Statistics Canada.

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