Canadian economic growth slows to crawl

The growth rate of the Canadian economy slowed to a crawl in the fourth quarter of 2011, Statistics Canada reported Friday.

At an annual rate, realgross domestic product (GDP)grew 1.8 per cent in the fourth quarter, after a 4.2 per cent increase in the third quarter.

The actual growth in the quarter was0.4 per cent, comparedwith one per cent in the third quarter, the agency said.

The annualized growth rate was what economists had been expecting.

Although there was "no surprise"at the headline number, some underlying numberssuch as consumption growth and business investmentwere stronger than expected, said Emanuella Enenajor of CIBC World Markets.

"Consumer spending and exports contributed the most to fourth-quarter GDP growth," Statistics Canada said.

Both goods and services industriesgrew, led by manufacturing, retail trade, and oil and gas extraction.

Enenajor saidgrowth of 0.4 per cent in December was stronger than expected, and bodes well for growth in the current quarter.

U.S.GDPgrew three per cent in the fourth quarter.