Statistics Canada has released a new report today confirming Canada’s real GDP increased by 1.5-percent in Q1 ’10, beating analyst expectations, and marking the seventh consecutive monthly gain.

The increase marks the biggest year over year gain since at least over ten years ago. The Canadian GDP took a hit over the last couple of years, including negative quarterly GDP change in part of 2008 and 2009, during the global economic down turn that saw consumption spending and home prices fall.

In the first quarter of this year, GDP growth was largely attributable to significant gains in production and inventory levels.

Real GDP is now up to 6.1-percent as at Q1 2010 on an annualized basis, compared to 4.9-percent in the same period last year.

The Canadian economy also developed more goods, mainly in the manufacturing sector that saw total gains of about 8-percent YoY.

Consumer spending in the period was also up marginally by 1.1-percent, and also increased in the previous quarter by 1-percent, indicating consumer confidence is increasing post the credit freeze.

The bank of Canada has delayed increasing interest rates to date, despite inflation rising closer to the upper ceiling of 2-percent, which could fuel more economic growth as consumers take advantage of the lower short-term available rates.

The Canadian dollar in early morning trading is up about one cent over the green back at about $0.96 per USD.