Analysts wary of Omicron variant’s economic impact

OTTAWA — 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 per cent in the third quarter on an annualized basis, beating analyst expectations for a gain of 3.0 per cent, Statistics Canada data showed.

A preliminary estimate for October showed a gain of 0.8 per cent, while September’s GDP was in line with expectations for a 0.1 per cent rise.

Statscan revised down annualized second-quarter GDP to a contraction of 3.2 per cent from a previous dip of 1.1 per cent. But with the October gain, economic activity is now just 0.5 per cent below pre-pandemic levels.