Canadian Economy Saw Strengthening, But Analysts Wary of Omicron Impact

• The Canadian economy roared back in the third quarter, with growth most likely accelerating in October on a manufacturing rebound, though economists were cautious on the looming impact of the Omicron COVID-19 variant. 
• Canada's economy grew 5.4% in the third quarter on an annualized basis, beating analyst expectations for a gain of 3.0%, Statistics Canada data showed. A preliminary estimate for October showed a gain of 0.8%, while September's GDP was in line with expectations for a 0.1% rise. 
• Statistics Canada revised down annualized second-quarter GDP to a contraction of 3.2% from a previous dip of 1.1%. But with the October gain, economic activity is now just 0.5% below pre-pandemic levels. "The October increase was maybe more encouraging for the speed of recovery even more than the third-quarter numbers," said Nathan Janzen, senior economist at Royal Bank of Canada.

(Source: Reuters)