Canadian Economy Shows 2.8% Growth In 2004

The Canadian economy slowed in the fourth quarter, but over the full year 2004 grew 2.8%, Statistics Canada reported Monday. Growth in the fourth quarter was just 0.4%, however, down from 0.7% growth in the third quarter.

The government statistics agency pointed out that Canada's gross domestic product has been pressured by weaker exports, which have been hurt by the higher Canadian dollar, especially in relation to the U.S. dollar.

"The United States economy grew at an annualized rate of 3.8% in the fourth quarter, in contrast to an annualized growth of 1.7% for Canada," Statistics Canada said. "Exports declined for a second consecutive quarter, while final domestic demand strengthened to 1.1% growth. GDP grew 0.2% in December following a 0.3 percent increase in November and a flat performance in October."

Copyright Agence France-Presse, 2005