Statistics Canada says economy is slowing by end of 2022 – National

Canadian economy still growing in October, but that growth is slowing in 2023, Statistics Canada speak.

The federal agency said Friday that the fact gross domestic product rose 0.1 percent in October, but its initial estimate for November showed little change that month.

Read more:

Inflation, housing, Russia: Here’s where the IMF says the Canadian economy is most at risk

Revised figures from September show a 0.2% gain for the economy.

Services growth of 0.3% in October – led by the public sector, wholesale and customer contact – was offset slightly by a 0.7% decline from the goods-producing sectors.

Statistics Canada says the performing arts, spectator sports and heritage organizations grew 4.7% amid more Toronto Blue Jays games than usual in October and the start of the season. late in the NHL pre-season.

The story continues below the ad

The agency said the cooling in commodity-producing industries in October was due to a drop in mining, quarrying, oil and gas production and weakness in the manufacturing sector.

Click to play video: 'Gasoline price situation: December 2022'

Gas price situation: December 2022

TD Bank senior economist James Orlando said Friday’s report was in line with the bank’s expectations for 1% annual growth in the fourth quarter of the year.

But BMO senior economist Robert Kavcic questioned whether those results could withstand the weight of the Bank of Canada’s rapid rate hikes, which have risen 4 percentage points since the start. years in an effort to slow the economy and cool it down. of inflation.

Read more:

Bank of Canada ‘remains ready to be strong’ on interest rates if needed: official

The story continues below the ad

“The Canadian economy is generally holding up relatively well through the end of 2022, largely because the services sector is now shouldering the weight,” he wrote in a note to clients Friday.

“But the real question will be how things play out in the first half of next year, as the Bank of Canada’s aggressive rate hikes start to work more effectively in the system.”

Orlando said slowing growth in Friday’s report shows that inflation remains high and interest rates rise are causing Canadians to “tighten their wallets.”

– with files from the Canadian Press

Click to play video: 'Business News: Recession Fears Rise'

Business News: Recession fears grow

© 2022 Global News, a division of Corus Entertainment Inc.


News5s: Update the world's latest breaking news online of the day, breaking news, politics, society today, international mainstream news .Updated news 24/7: Entertainment, the World everyday world. Hot news, images, video clips that are updated quickly and reliably

Related Articles

Back to top button