Canada GDP Growth Slows to 1.3 Percent in Third Quarter
Canada's economy grew at an annualized pace of 1.3 percent in the third quarter, missing Bank of Canada projections following a September contraction.
The Canadian economy grew at an annualized pace of 1.3 percent between July and September, marking a slowdown from the second quarter and falling short of the 2 percent projection set by the Bank of Canada.
Data from Statistics Canada shows that real gross domestic product remained unchanged in August for the second consecutive month. While retail trade, manufacturing, and construction saw gains, these were offset by declines in public administration and wholesale trade. A preliminary estimate indicates the economy contracted by 0.1 percent in September, driven by losses in mining, quarrying, oil and gas extraction, and manufacturing, though growth in utilities and wholesale trade provided a partial offset.
In response to these economic shifts, the Bank of Canada raised its key interest rate by 25 basis points to 2.5 percent on Wednesday. Market analysts anticipate a further increase to 2.75 percent in January.
