A comprehensive measure of a Canada ‘s overall production and consumption of goods and services. GDP is a significant report in FX Market, serving as one of the primary indicators of a country’s overall economic health.
Robust GDP growth signals a heightened level of economic activity and often a higher demand for the domestic currency. At the same time, economic expansion raises concerns about inflationary pressures which may prompt monetary authorities to increase interest rates. Thus positive GDP readings are generally bullish for the Canadian Dollar, while negative readings are generally bearish.
Most production reports that lead to Canadian GDP are released before the official GDP number. Therefore, actual GDP figures usually confirm expectations. However, an unexpected release can move markets due to the significance of the figure.
Technically, Gross Domestic Product is calculated in the following way:
GDP = C + I + G + (EX – IM)
C = private consumption
I = private investment
G = government expenditure
EX = exports of goods and services
IM = imports of goods and services
The headline figures for GDP are the percentage growth rate from the previous quarter and the annualized percentage change in GDP. Prices used are benchmarked to 1997 prices.
Relevance : Tends to move markets on release
Release Schedule : 8:30 AM (EST); quarterly
Source of Report : Statistics Canada
Web Address : http://www.statcan.ca/start.html
Address of Release : http://www.statcan.ca/english/Release/index.htm
Refer current year > Gross domestic product by industry
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