Canadian Q3 GDP slows to 1.3% after strong second quarter gain


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Canadian Q3 GDP slows to 1.3% after strong second quarter gain

On Friday, the 29th of November 2019, official data from Canada’s StatsCan had revealed that the highly developed market economy of Canada, the 10th largest in the world by nominal GDP and 16th largest by PPP (Purchasing Power Parity), which is largely based on its exports to the neighbouring United States, was slowed to an annualized rate of 1.3 per cent over the third quarter of the year following a sharp downturn in exports, nonetheless, Canada’s Q3 GDP growth came marginally above the analysts’ expectation ahead of a BoC (Bank of Canada) rate decision scheduled to be announced next week.

Nonetheless, despite a steep downturn in exports amid a tariff hike on Canadian metals by the United States earlier during the third quarter, Friday’s (November 29th) StatsCan data matched a BoC forecast made earlier on October, while the Bank of Canada would likely to keep the interest rate unchanged at a current 1.75 per cent.

Besides, according to StatsCan’s Friday’s (November 29th) report, Canada’s business investment grew by 2.6 per cent during Q3 on an annualized basis, remarking the fastest pace since Q4, 2017, while household spending rose by 0.4 per cent and home improvement alongside housing investment accelerated by 3.2 per cent, a figure which was never witnessed since Q1, 2012, as expressing a cautiously optimistic outlook on Canadian economy, a chief currency analyst at Forexlive, Adam Button said late on Friday (November 29th), “The headlines are bang on expectations but below the surface there is plenty to be optimistic about. ”