The economy of Canada rebounded from a year-end slump in January due to factories, mines, and the return of professional ice hockey, the government reported Thursday, but growth appears too weak to match the central bank's optimistic outlook, and interest rates are not expected to rise until 2014. Gross domestic product (GDP) expanded by 0.2 percent in January, Statistics Canada (Statscan) said from Ottawa, following the weakest two quarters since the 2008-2009 recession and a 0.2 percent contraction in December. A rebound in the manufacturing sector helped spark the turnaround, along with strength in the mining and energy sectors and the delayed start of the country's top professional sport after National Hockey League players and team owners settled a months-long labor dispute. The Statscan data suggests the economy is beginning the year in better condition after disappointing 0.6 percent annualized growth in the fourth quarter of 2012. However, economists forecast that the first quarter will fall far short of the central bank's projected 2.3 percent annual growth rate. Canada recovered much more quickly from the 2008-2009 recession than did the United States and major European countries but has been stagnant for several months as exports and manufacturing stalled, forcing the Bank of Canada to acknowledge that it will not be able to increase interest rates in the short term.
