Merchant Blog

Blog Article: Canada Posts Strong GDP Growth

It was announced today that Canada’s GDP grew at an annualized 6.1% pace in the first quarter of this year. Although it is growing off of a small recessionary base, it is impressive to see our country’s economy grow at rates that we usually only hear about in emerging economies.

Analyzing Canadian GDP Growth

As we can see from the chart below, the Canadian economy is now only 4% below its pre-recession levels.

Canadian GDP and Employment

However, as with typical economic cycles, employment still has a ways to recover as it is a lagging economic indicator. As a result, if the recovery continues, we can expect increased hiring and payrolls, resulting in increased revenues for companies that rely on consumer spending.

Although there are always downside risks to economic growth (today it is a potential European debt crisis or rising interest rates that could hurt Canada’s real estate market), it seems as though Canada is on the right track. Companies are seeing an increase in revenues and jobs are being created. For many, this would be a great time to invest in their business. For our clients at Merchant Advance Capital we think we can help make this recovery the one that takes their business to the next level by providing the growth capital they need to succeed!

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