Canadian economy slowed by more than expected in Q4, contracted in December

OTTAWA - The Canadian economy ended 2022 with a deeper slowdown than anticipated amid higher interest rates but appears to have gained momentum at the start of the new year.

Statistics Canada’s preliminary estimate had predicted 1.6 per cent annualized growth for the quarter. Real business investment also declined for a third consecutive quarter as higher interest rates weakened housing investment in 2022.But the report includes some silver linings for Canadians. After declining by 0.1 per cent in the third quarter, household spending bounced back by 0.5 per cent in the fourth quarter. Household disposable incomes also rose faster than their nominal spending, allowing them to save more money.

The Liberal government introduced these measures targeted at lower-income Canadians to help them cope with higher inflation. The central bank contends a slowdown is necessary to bring inflation back down to its two per cent target.

I wonder if 30-year high interest and inflation have anything to do with it? And corporate profiteering? Capitalism in general?

Keep sending money to Ukraine. Keep neglecting people's needs at home. Keep finding reasons and funding for more wars.

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