Table of Contents:
The Canadian economic environment
In the third quarter of 2024, the Canadian economy showed signs of slowing down, with a 1% increase in Gross Domestic Product (GDP) on an annualized basis. This figure, although in line with analysts’ forecasts, was lower than the 1.5% forecast by the Bank of Canada. The upward revision of GDP in the second quarter, which had reached 2.2%, highlighted a slowdown in the country’s economic growth
.
Analysis of September data
In September, GDP increased by 0.1% compared to the previous month, August, when it had remained substantially unchanged. Statistics Canada had estimated growth of 0.3% for the same month, highlighting a gap between expectations and actual results. This slowdown could be attributed to several factors, including global economic uncertainty and the restrictive monetary policies adopted
to combat inflation.
Sectorial impact and future prospects
The industrial sector declined, marking the fifth consecutive decline. The data show a decrease of 0.3% in value and 0.1% in volume compared to the previous month, while on an annual basis the decline is 5.7% in value and 4.7% in volume. These results indicate a significant contraction that could influence the future decisions of investors and companies. The outlook for the fourth quarter remains uncertain, with analysts closely monitoring signs of recovery or
further slowdowns.
Comparison with other economies
The comparison with other economies, such as the Swiss one, which recorded growth of 0.2% in the third quarter, highlights the challenges that Canada faces. The Swiss Ministry of Economy has confirmed that the slowdown is due to a decrease in household consumption and investment in construction. These factors are similar to those that Canada is facing, suggesting that global economic dynamics could have a significant impact on future performance
.
