Statistics Canada will release December and fourth quarter gross domestic product figures this morning. A person walks past RBC signage in Toronto on Tuesday, Sept. 20, 2022. THE CANADIAN PRESS/Alex Lupul
OTTAWA – The Canadian economy stayed flat in the fourth quarter following five consecutive quarters of growth, marking a deeper slowdown than anticipated.
Statistics Canada says real gross domestic product was unchanged in the last three months of 2022, despite higher household and government spending as well as a stronger trade position for Canada.
Real GDP was weighed down by a slower accumulation of inventories by businesses along with a decline in real business investment.
The report shows a much grimmer economy than forecasters had anticipated as higher interest rates take a more noticeable toll on the economy.
In December, the economy contracted by 0.1 per cent as goods-producing industries declined.
However, a preliminary estimate from Statistics Canada suggests the economy bounced back in January with 0.3 per cent growth in real GDP.
This report by The Canadian Press was first published Feb. 28, 2023.
