Canada’s economy grew 1.3 percent in the third quarter, missing market expectations of 1.4 percent growth but matching the Bank of Canada’s recent forecast.
Royce Mendes, a CIBC World Markets economist, said that although the 1.3 percent growth “isn’t anything to write home about, the revisions coupled with strength in final domestic demand growth do reinforce the Bank of Canada’s current stand-pat view on rates.”
Market analysts, including those at the Bank of Canada, forecast under 2 percent growth for 2019 and 2020.
Business spending rebounded in the third quarter, up 10.7 percent annualized, the largest increase since late 2017. Household consumption rose from 0.5 percent in the second quarter to 1.6 percent in the third quarter.
TREND FORECAST: The global economic slowdown will continue to affect Canada. As the world economies continue to slow, Canada’s central bank won’t “stand-pat” and will in fact drop their interest rates down to the zero-to negative range.