2 April 2019

In case of the real estate and brokerages, the growth reached 4.1%, but the number is expected to be lower in February.

The construction sector showed a 1.9% increase, with the residential activity being the main driver (3.1%). It’s the first growth of this sector in eight months and the largest one in almost 6 years.

Last month, Finance Minister Bill Morneau dispelled fears about Canada moving towards recession or even facing it already. This statement followed several observers who warned that the latest decreases in the housing sector could affect the entire economy in the end.

“This is not true”, – Morneau said after the release of the latest federal budget. “It’s technically wrong and it definitely doesn’t coincide with our projections”.

Meanwhile, Gluskin Sheff chief economist David Rosenberg earlier warned that if we’re not there yet, the recession is only one step away from us. In addition to it, Fidelity Investments portfolio manager and former BoC advisor David Wolf believes Canada is already deep in recession, based on the economic performance in the fourth quarter of 2018.