Canada’s economic growth slowed to an annualized 1% in this year’s third quarter, a marked decline from growth of 2.2% registered in the previous second quarter.
The third-quarter gross domestic product (GDP) of 1% was inline with the consensus forecast of economists who were surveyed by the Reuters news agency.
However, the Q3 growth was below the 1.5% forecast by the Bank of Canada.
Additionally, GDP shrank on a per-person basis for a sixth consecutive quarter as elevated interest rates constrain business investment and overall growth across the country.
Growth on a per capita basis in Canada declined by 0.4% year-over-year in the quarter.
The slowing economy has all but cemented another interest rate cut from the Bank of Canada at its next policy meeting on Dec. 11.
However, economists and traders remain divided on whether the central bank will cut its key interest rate by a quarter or half a percentage point at its upcoming meeting.
In October, the Bank of Canada announced a 50-basis point interest rate cut as inflation returned to the central bank’s 2% target. The overnight interest rate now stands at 3.75%.
The latest GDP report showed higher household and government spending was partly offset by slower inventory accumulation, lower business investment, and a slowdown in exports.
