In the third quarter of last year (July to September), Canada’s gross domestic product (GDP) recorded negative growth, continuing the contraction phase following the second quarter.
On the 30th, the Federal Statistical Office said in a related report, “GDP decreased by 1.1% in the third quarter,” and “the main reasons were that consumer spending remained stagnant and exports decreased significantly.” Most economic experts expected GDP to increase by 0.1% in the third quarter, but it was negative following the second quarter.
Continuous negative growth can be considered a recession in economic terms, but according to the Federal Reserve, it is expected to show a positive increase of 0.8% in October.
In relation to this, economic experts pointed out, “Contrary to expectations, the number was negative, but it did not reach a recession.” Dog Porter, chief economics officer at the Bank of Montreal, said, “Regardless of whether there is a recession or not, it is clear that the overall economy has contracted,” and added, “There are economic stimulus factors such as population growth, but there has been no growth.”
Porter, senior economic advisor, explained, “If you look at the overall signs, an unpredictable trend is occurring,” adding, “The economy is struggling, but we have narrowly avoided a recession.” Porter, senior economic advisor, added, “The third quarter performance was lower than expected, which will have an impact on the Federal Reserve Bank’s interest rate policy.” The Federal Central Bank is scheduled to hold its last monetary policy meeting of the year on December 6, and economic experts predicted that “the Federal Central Bank will refrain from further raising interest rates, but the possibility of an interest rate increase is slim.”
