Statistics Canada is set to release its gross domestic product reading for the third quarter this morning. The Bay Street Financial District is shown with the Canadian flag in Toronto on Friday, August 5, 2022. CANADIAN PRESS/Nathan Denette
OTTAWA – Statistics Canada says the economy shrank in the third quarter by 1.1 per cent on an annualized basis.
The federal agency says a decrease in international exports and slower inventory accumulation by businesses were partially offset by increases in government spending and housing investment.
It also revised up its reading for real gross domestic product in the second quarter, noting the economy did not shrink, but rather grew by 1.4 per cent on an annualized basis.
Today’s report shows consumer spending continued to be flat for a second consecutive quarter.
Meanwhile, business capital investment fell by two per cent.
Bank of Canada interest rate hikes have been putting downward pressure on consumer and business spending as they both face higher borrowing costs.
This report by The Canadian Press was first published Nov. 30, 2023.
