UPDATES WITH ADDITIONAL FIGURES
By Ovunc Kutlu
ISTANBUL (AA) - Canada's real gross domestic product (GDP) rose 0.4% in the first quarter of this year, the country's statistical body said Friday.
The figure for the fourth quarter of 2023 was revised downward to no change, from an increase of 0.2%.
"In the first quarter of 2024, higher household spending on services was the top contributor to the increase in GDP, while slower inventory accumulations moderated overall growth," Statistics Canada said in a statement.
"Household spending increased by 0.7% in the first quarter, primarily due to a 1.1% rise in spending on services, primarily telecommunications services, rent and air transport," it added. "Household spending on goods edged up 0.3%, with higher expenditures on new trucks, vans and sport utility vehicles."
Household savings rate reached 7% in the first quarter, marking the highest rate since the first quarter of 2022.
This was due to disposable income rising 1.8% in the January-March period, which outweighed consumption expenditure that rose 1.2%, according to the agency.
Statistics Canada said exports of goods and services rose 0.5% in the first quarter, following a 0.8% increase in the fourth quarter of 2023.
"The leading contributor to the increase in the first quarter of 2024 was exports of unwrought gold, silver, and platinum group metals, which rose on higher exports to United Kingdom and Switzerland," said the statement.
However, lower exports of passenger cars and light trucks, as well as crude oil and bitumen, moderated the overall increase in exports.
Imports of goods and services, meanwhile, climbed 0.4% in the first quarter, after a 0.2% gain in the fourth quarter of 2023.
"Higher imports of clothing, footwear and textile products led the increase in the first quarter of 2024, followed by waste and scrap of metal and glass, as well as electricity," the statement said.
These gains were partially offset by declines in imports of passenger cars and light trucks due to lower global production, the agency noted.
"The ratio of the price of exports to the price of imports—the terms of trade—fell 1.2% in the first quarter," it said. "The terms of trade have fallen in six of the last seven quarters."