Core Viewpoint - Economists caution against being misled by the strong overall data in Canada's Q1 GDP report, highlighting the underlying economic fragility despite a 2.2% annualized growth rate driven by businesses increasing capacity ahead of tariffs [1] Economic Performance - Canada's Q1 GDP annualized growth rate reached 2.2%, influenced by businesses ramping up production before tariffs took effect [1] - Domestic final demand contracted by 0.1% in Q1, indicating a more accurate reflection of the economy's health [1] Monetary Policy Implications - The acceleration of core inflation should prompt the Bank of Canada officials to consider a 25 basis point cut in the benchmark interest rate in the upcoming meeting [1] - The GDP data suggests that the economy was already stagnating before the full impact of tariffs became evident [1]