The Weekly Review, March 17 to 21, 2025

Largest investment in the Canadian bond market since April 2020

Foreign investors acquired $7.9 billion of Canadian securities in January 2025, led by the highest monthly investment in the Canadian bond market since April 2020. Meanwhile, Canadian investors reduced their holdings of foreign securities by $3.2 billion, mainly of US equity securities. As a result, international transactions in securities generated a net inflow of funds of $11.1 billion to the Canadian economy in January 2025.
Source: Canada's international transactions in securities, January 2025

End of the GST/HST break puts upward pressure on prices in February 2025

The Consumer Price Index (CPI) rose 2.6% year over year in February, following an increase of 1.9% in January. While faster price growth was broad-based in February, the end of the goods and services tax (GST)/harmonized sales tax (HST) break partway through the month contributed notable upward pressure to prices for eligible products. Slower price growth for gasoline prices (+5.1%) moderated the all-items CPI acceleration. On a monthly basis, the CPI rose 1.1% in February. On a seasonally adjusted monthly basis, the CPI rose 0.7%.

Source: Consumer Price Index, February 2025

More than half of internal trade is in services in 2023

In 2023, approximately $532 billion worth of goods and services were traded across provincial and territorial borders, accounting for 18.1% of Canada's gross domestic product (GDP). Of this total, $301 billion (56.6%) was for services, while the remainder was for merchandise trade. The contribution of internal trade to Canada's GDP has seen a notable decline over the last four decades, falling from 26.7% in 1981 to 18.1% in 2023.

Source: Interprovincial trade flows and frictions

Higher rates of avoidable hospitalization among males and the Black population

Avoidable hospitalizations are a common indicator of access to primary health care, where higher rates may indicate poorer access. According to a new study, males consistently had significantly higher avoidable hospitalization rates compared to females across all years examined. For males, the rates ranged from 180.1 to 242.0 per 100,000 people, while for females, the rates ranged from 132.4 to 194.2 per 100,000 people. Among racialized groups, the Black population had the highest avoidable hospitalization rates (ranging from 211.8 to 267.8 per 100,000 people), followed by South Asian and Filipino population groups.

Source: Health Reports, March 2025

Strong population growth in the first and second quarters keeps the 2024 annual growth rate high

Canada's population increased by 744,324 people in 2024, a growth rate of 1.8%. While this growth rate was lower than those in 2022 (+2.5%) and 2023 (+3.1%), it was higher than that in any year from 1972 to 2021. In 2024, more than two-thirds (67.7%) of the population increase (+504,243 people) occurred in the first two quarters of the year. Typically, growth is more evenly distributed throughout the year. In 2024, the Government of Canada announced policies to limit the number of non-permanent residents. The slower growth in the second half of the year could reflect the implementation of some of these policies.

Source: Canada's population estimates, fourth quarter 2024

Nourish with fruits and vegetables 

March is Nutrition Month in Canada. Nourishing with the right foods, such as fruits and vegetables, is essential for maintaining good health. From 2015 to 2021, the percentage of adults who reported eating fruits or vegetables five or more times per day declined. However, the proportion remained stable from 2021 (21.8%) to 2023 (21.6%). Fruit and vegetable consumption varied by age. In 2023, the share of adults who reported consuming fruits or vegetables five or more times per day was highest among Canadians aged 65 and older (24.5%) and lowest among younger adults aged 18 to 34 (17.6%). 

Source: Nourish to flourish: A look at nutrition, costs, and trends in Canadians’ health