Canada GDP


Economic growth slows in third quarter

In the third quarter, gross domestic product (GDP) added 1.0% in seasonally adjusted annualised terms, undershooting market expectations, which had seen GDP expanding 1.4%. The reading, which was half the 2.0% expansion recorded in Q2 represents the second consecutive quarter of decelerating economic growth. The domestic sector remained strong, as growth in private consumption accelerated to 3.5% (Q2: +2.1% saar) and business fixed investment expanded 9.4%, after having grown 13.1% in the second quarter. The weak third quarter reading was led by a slowdown in the external sector, as exports contracted 5.0% contrasting the 5.0% growth experienced in the second quarter while imports grew 6.4% in the third quarter (Q2: +19.0% saar). The net contribution from the external sector to overall economic growth improved somewhat from a 5.6 percentage-point detraction in the second quarter to a 4.2 percentage-point decrease in the third quarter. Due to the weak economic growth experienced in the third quarter, the Bank of Canada decided to maintain interest rates at 1.00% at its latest monetary policy meeting held on 7 December. The move was not unexpected with the Bank likely to put policy tightening on hold unless the economic recovery is more pronounced in the months to come.


Sample Report

Looking for forecasts related to GDP in Canada? Download a sample report now.


Canada Economic News

More news

Search form