The growth was in line with what economists had predicted. Although consumer spending and business investment was stronger foreign trade slowed. The strong dollar and economic slowdowns especially in Europe no doubt contributed to this result.
The third quarter growth rate was stronger at 4.2 per cent according to Statistics Canada. In the fourth quarter export growth declined from 16 per cent to 4.6 per cent while imports rose 2.2. per cent.
Manufacturers are struggling with a high Canadian dollar and also weak demand. However energy companies such as Enbridge are doing well as the demand for energy increases. For much more see this Bloomberg article.
Canada is the world's tenth largest economy. In the first half of this year the growth rate is predicted to be under two percent according to the central bank's forecast. Global financial problems and weaker demand are the main causes of the slower growth.