Canada's economy stalls, signalling hiring spree might not be enough to ward off recession

But there is more to GDP than consumption. Household spending increased 0.5 per cent from the third quarter, so all those new jobs were indeed creating demand, but not enough demand to offset reduced business spending on inventories, machinery and equipment and housing. Statistics Canada put the annual rate of growth over the final three months of 2022 at 0.0 per cent, compared with a rate of 2.3 per cent in the third quarter.

It will be a rare time that the Bank of Canada welcomes news that the economy has entered a rough patch. Governor Tiff Macklem’s unprecedented series of interest rate increases last year were calibrated to quickly take the heat out of inflation without causing a sharp spike in unemployment.

The Bank of Canada predicted in January that GDP would grow at an annual rate of 0.5 per cent in the fourth quarter, so the economy appears to be unfolding as policymakers thought it would at the start of the year. That guarantees that Macklem will make good on his conditional promise to pause rate increases next week when he makes his next decision on where to set interest rates.

GDP — the combination of consumption, investment, government spending and the net contribution from international trade — grew 3.4 per cent from 2021, pushing the size of Canada’s economy to $2.2 trillion.

CarmichaelKevin Because all those jobs are crap jobs that don't pay and the out if control spending and corporate fleecing by grocery companies takes every damn cent so no money is going back into the economy...just into loblaw and taxes.

Finance Finance Latest News, Finance Finance Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

Instant reaction: What the Street is saying after Canada’s surprisingly weak GDP reportThe Canadian economy recorded no growth in the final three months of 2022, massively underperforming expectations Canada is in trouble on many fronts. Healthcare is collapsing, many people cannot afford housing, the population is polarized & toxic, the country can’t defend itself and is behind in its NATO obligations. I won’t even mention the national debt. It is only surprising to anyone who has not been paying attention.
Source: globeandmail - 🏆 5. / 92 Read more »

Why inflation in the U.S. is a problem for the Bank of CanadaAdding to the downward pressure on the loonie is the Bank of Canada's declaration that its hiking campaign is currently on pause From m_zadikian
Source: YahooFinanceCA - 🏆 47. / 63 Read more »

Canadian economy remained flat in fourth-quarter, contracted in DecemberStatistics Canada says real GDP was unchanged in the last three months of 2022, despite higher household and government spending as well as a stronger trade position for Canada Unfortunately, wasn't this the intention with the very rapid interest rate increases?
Source: globeandmail - 🏆 5. / 92 Read more »