Ottawa, Apr 1 (IANS): Advance information indicates that Canada's real gross domestic product (GDP) increased 0.3 per cent in February, the national statistical agency said.

Statistics Canada said on Friday that increases in the mining, quarrying, oil and gas extraction, manufacturing, and finance and insurance sectors in February were slightly offset by decreases in construction, wholesale trade, and accommodation and food services, reports Xinhua news agency.

GDP rose 0.5 per cent in January, following a slight contraction in December 2022.

Both goods-producing and services-producing industries were up in January, as 17 of 20 industrial sectors posted increases, the statistical agency said.

According to a recent survey conducted by the Finance Ministry, with higher interest rates, as well as slower economic growth in the US and around the world, private sector economists expected the Canadian economy to enter a shallow recession in 2023.

With a peak-to-trough decline of just 0.4 per cent, the contraction in real GDP is less severe than the 1.6 per cent decline considered in the 2022 Fall Economic Statement downside scenario.

On an annual basis, real GDP growth is projected to decelerate from a strong 3.4 per cent in 2022 to 0.3 per cent in 2023, before rebounding to 1.5 per cent in 2024.