Canada’s economy is showing signs of a rebound despite several global headwinds ahead, one economist says.
In January, the economy expanded 0.5 per cent on a monthly basis, according to data released by Statistics Canada on Tuesday. The growth followed a relatively weak year-end quarter, giving signs of optimism despite the recent global banking crisis and elevated cost of living, one economist said.
“We are seeing some signs of improvement at least in Canada,” Allison Boxer, senior vice-president and economist at PIMCO, told BNN Bloomberg in an interview on Friday.
She added that the country’s inflation picture is also encouraging when compared to other developed markets.
In January, inflation showed signs of easing with a 5.9 per cent rise year-over-year, weaker than economists had anticipated.
“Canada stands out as seeing somewhat more progress back towards central bank target than we’ve seen elsewhere,” Boxer said.