Sat. Mar 2nd, 2024

GDP: Canadian economy declines to 3rd quarter

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Statistics Canada has revised its real gross domestic product (GDP) figure upwards for the second quarter.

The Canadian Press

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The Canadian economy fell 1.1% on an annualized basis in the third quarter of this year, according to Statistics Canada.

The federal agency says a decrease in international exports and slower inventory accumulation by businesses were partially offset by increased government spending and investment in housing.

Housing investment rose 2% in the third quarter after posting five consecutive quarterly declines. The 6.5% increase in new construction was partially offset by a 4.3% decline in ownership transfer costs, which represent resale activity.

On the other hand, the agency revised upwards its real gross domestic product (GDP) figure for the second quarter, noting that the economy did not shrink, but rather grew. by 1.4% on an annualized basis.

The Statistics Canada report shows that consumer spending remained stable for a second consecutive quarter and that business capital investment declined 2%.

Bank of Canada interest rate hikes put pressure on the decline in consumer and business spending as they both face higher borrowing costs.

Statistics Canada has also observed that compensation of employees increased by 1.3% in the third quarter and that net household savings also increased.

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