The Canadian economy ended the year with its best showing in six quarters, Statistics Canada reported today, as exports rebounded and fourth quarter GDP advanced a solid 0.9%.

For the year, GDP advanced 1.7%, almost half the pace set in 2002, as exports fell for a third straight year.

On an annualized basis, Canada’s GDP growth for the fourth quarter was 3.8%, by far the best annualized figure in 2003.

The annualized figures for the four quarters show the economy started 2003 with relatively strong growth, shrank in the second quarter, grew slightly in Q3 and came back strongly in the final quarter.

Much of the strength came late in the fourth quarter, as growth accelerated from 0.2% in October and November to 0.5% in December.

Private sector economists have suggested that low growth in the fourth quarter could lead the central bank to cut interest rates at its next scheduled decision, on March 2.

Despite the rising Canadian dollar, exports advanced 3.2% in Q4 after a year-long slump.

Exports of industrial goods and materials surged 8.3% and oil and natural gas jumped 4.2%.

For the full year, Statistics Canada said “consumers continued to shore up the economy for the third year in a row,” while exports “were a major source of weakness and “business investment turned around.”