Canada's economy remained flat in the fourth quarter after five consecutive quarters of growth, signaling a deeper-than-expected slowdown.
Statistics Canada reports real gross domestic product was unchanged in the final three months of 2022, despite higher household and government spending and a stronger trade position for Canada.
Real GDP was affected by slower inventory accumulation by businesses along with a decline in real business investment.
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The report showed the economy to be worse than economists expected as higher interest rates took a more significant toll on the economy.
In December, the economy contracted by 0.1 percent as the manufacturing industry contracted. However, preliminary estimates from Statistics Canada suggested the economy rebounded in January with 0.3 per cent growth in real GDP.
The US dollar strengthened against the Canadian currency by 0.12% to trade at 1.3594 after the GDP report was released.
