July 20, 2024

The Queens County Citizen

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Canada’s GDP contracted by 1.1% in the 3rd quarter

Canada's GDP contracted by 1.1% in the 3rd quarter

(Ottawa) According to Statistics Canada, the Canadian economy shrank by 1.1% on an annualized basis in the third quarter of this year.

A decline in international exports and slower inventory build-up by businesses partially offset increased government spending and investment in housing, the federal agency said.

Housing investment rose 2% in the third quarter after posting five consecutive quarters of declines. A 6.5% increase in new construction was partially offset by a 4.3% decline in property transfer costs, indicating resale activity.

On the other hand, the agency revised upward its real gross domestic product (GDP) number for the second quarter, saying the economy did not shrink, but grew by 1.4% on an annual basis.

A Statistics Canada report shows consumer spending held steady for the second quarter in a row and business capital investment fell 2%.

The Bank of Canada’s interest rate hike eased pressure on consumer and business spending as they both face higher borrowing costs.

Statistics Canada also reported employee compensation rose 1.3% in the third quarter and net household savings also increased.

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