Earlier today, Canada released their Quarter Three report for their GDP. In the report, it was revealed that the nation narrowly squeezed by a recession when their GDP unexpectedly shrunk by 1.1%. Initially, it was reported that Canada's GDP had seen a 0.2% decline in Quarter Two, which would have currently put them into a recession. However, that number was later revised to a 1.4% growth. It is expected that their GDP will continue to grow at a slow rate while interest rates at at a relativity high level. This is to combat the high inflation felt around the world.
The good news is that interest rates are expected to be at their peak, due to the excess demand for the supply of money seeming to nearly be diminished. Within Quarter Three, Canada's economy saw a decrease in exports while also seeing a slower accumulation of inventory. However, it is slightly offset by an increase in government spending and a increase in investments. Particularly the housing market.
Source:
https://www.reuters.com/markets/canadas-economy-shrinks-11-q3-growth-seen-october-2023-11-30/
This is very interesting to see how Canada is handling its economy, especially with their unemployment rates increasing while exports are shrinking. Hopefully Canada is able to reverse this.
ReplyDeleteVery interesting to think about how small some margins are in the field of economics. Im also currious to know why and how was a 0.2% decline changed to a 1.4% growth
ReplyDeleteI was previously unaware of Canada's economic issues. Does the US's current state of the economy have a large impact on Canada's? Are they correlated?
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