Canada’s economy shows no signs of growth
2023.01.31 11:09
Canada’s economy shows no signs of growth
By Tiffany Smith
Budrigannews.com – According to Statistics Canada data released on Tuesday, the Canadian economy expanded by 0.1% in November, which was in line with the prediction made by an analyst poll conducted by Reuters. However, the growth rate was most likely unchanged in December and exceeded expectations in the fourth quarter.
Statscan stated in a preliminary estimate for December that gains in the public, utility, and retail sectors were offset by decreases in wholesale, finance, and insurance sectors.
In addition, it stated that annualized gross domestic product would likely rise by 1.6% in the fourth quarter, exceeding the Bank of Canada’s forecast of 1.3%. The flash estimates for GDP growth in December and the fourth quarter of 2022 are 3.8%, but this number could change when data are released next month.
To cool the economy and reduce inflation, the Canadian central bank has increased its key interest rate by a record 425 basis points in ten months. The BoC said last week that it would likely delay any further rate increases after the most recent one.
The third consecutive month of growth in transportation and warehousing contributed to Canada’s service-producing sector’s 0.2% growth in November. In November, the construction and manufacturing sectors contributed to a 0.1% decline in the goods-producing sector.
$1 = 1.34 Can. D.
