THUNDER BAY – Business – In stark contrast to the robust economic growth experienced in the United States, the Canadian economy faced a significant downturn during the summer. This downturn was characterized by a decrease in export shipments and a stagnation in consumer spending, reflecting a persistent economic challenge as the country grapples with higher interest rates.
According to data released by Statistics Canada, the real gross domestic product (GDP) in Canada declined at an annualized rate of 1.1 percent in the third quarter.
This marks a growing disparity in economic performance between Canada and the United States, where the U.S. realized a remarkable 5.2 percent expansion in the same quarter.
These results fell considerably short of both the Bank of Canada’s projected growth rate of 0.8 percent and the modest 0.1 percent increase expected by Bay Street investors.
It’s worth noting that Canada managed to avoid the technical definition of a recession, which involves two consecutive quarters of GDP decline.
Statistics Canada also made significant upward revisions to its second-quarter figures, now indicating an annualized growth rate of 1.4 percent, in contrast to the previously reported slight decline.