Canada’s third quarter GDP growth has come in way below expectations, at just a 0.4% annualized rate.
This is far worse than the Bank of Canada prediction for 2% annualized growth.
It’s also well below the U.S.’s 2.8% annualized rate during the same quarter.
What was the largest factor in the weak Canadian GDP number? A massive spike in imports.
The Star: The 0.1 per cent headline growth number – 0.4 per cent at the annualized rate – was driven by domestic demand but was weaker than the 1 per cent most economists predicted, weighed down by a strong Canadian dollar and shriveled by weak exports.
Perhaps a stronger Canadian dollar isn’t always a good thing for Canada, and conversely a weak U.S. dollar isn’t always a bad thing for the U.S..
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