Canada GDP is on track for a sizable 2.5% annualized gain in 2Q following better-than-expected economic data for April, says economist Andrew Grantham from CIBC Capital Markets. GDP by industry in April rose 0.5% from the prior month, and Statistics Canada's early estimate is for a 0.1% month-over-month jump in May. Grantham says a 2.5% annualized jump in 2Q would surpass by a wide margin the Bank of Canada's forecast for a 1.5% rise. Still, "it wouldn't quite make up for the undershoot in 1Q from an output gap point of view," Grantham says, in reference to the 0.1% annualized drop in 1Q. Grantham says the firm is sticking to its call for no move in BOC's policy rate this year. (paul.vieira@wsj.com; @paulvieira)
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Canada On Track For 2.5% GDP Growth in 2Q — Market Talk
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Canada GDP is on track for a sizable 2.5% annualized gain in 2Q following better-than-expected economic data for April, says economist Andrew Grantham from CIBC Capital Markets. GDP by industry in April rose 0.5% from the prior month, and Statistics Canada's early estimate is for a 0.1% month-over…