Canada Growth in 1Q Stagnates as Consumer Spending Slows

Canada’s economic growth rate stagnated in the January-March period as consumer spending increased at the slowest pace in three years, raising the chances of lower interest rates by the end of 2012.

Gross domestic product grew at a 1.9 percent annualized pace in the first quarter, matching the revised rate of the prior three months and the median forecast of 27 economists surveyed by Bloomberg. The economy grew 0.1 percent on a monthly basis in March, Ottawa-based Statistics Canada said today, less than the median economist forecast of 0.3 percent.