The stronger than expected Canadian economic performance in the fourth quarter of 2024 hinted at an inflection or a turning point for the country. Canada’s GDP for Q4 increased by 2.6%, and inflation stayed in line with the Bank of Canada’s 2% target for the second half of the year, suggesting increased stability. The interest rate cuts by the Central Bank (5 cuts through the end of 2024, encompassing a total of 175 bps) seemed to take root, spurring increased investment and economic activity. January seemed to confirm this trend, as GDP increased by 0.4%, its best performance in 11 months. The Bank of Canada again cut its overnight rate in late January by 25 bps.