29th November, 2024: Canada’s economic growth slowed to a 1% annualized rate in the third quarter, down from 2.2% in the previous quarter, according to the latest data from Statistics Canada.
This slowdown has raised expectations that the Bank of Canada may implement a more significant rate cut at its upcoming announcement on December 11. With inflation now at the target level of 2%, the central bank has greater flexibility to take bold action to stimulate economic activity.
While the third-quarter growth rate aligns with market predictions, it fell short of the Bank of Canada’s forecast, which had anticipated a 1.5% increase. The report highlights that stronger household and government spending helped support the economy, but this was counterbalanced by a decline in business investment.
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