Statistics Canada announced on Tuesday that the country’s gross domestic product (GDP) grew 1.1 percent m-o-m in March after a revised 0.4 m-o-m advance in February (originally an increase of 0.4 percent m-o-m).

That was slightly above economists’ forecast for a growth of 1.0 percent m-o-m.

In the first quarter of 2021, the Canadian GDP grew 1.4 percent q-o-q, following a revised 2.2 percent q-o-q gain in the fourth quarter of 2020 (originally a 2.3 percent q-o-q advance).

According to the report, the q-o-q increase in GDP reflected the continued strength of the economy, influenced by favourable mortgage rates, continued government transfers to households and businesses, and an improved labour market. These factors boosted the demand for housing investment, while rising input costs heightened construction costs.

Expressed at an annualized rate, Canada’s GDP expanded 5.6 percent in the first quarter after a revised 9.3 percent jump in the previous quarter (originally a 9.6 percent surge). This was worse than economists’ forecast of a 6.7 percent increase.