The Canadian economy contracted unexpectedly during the second quarter, according to data released Friday. The CIBC analysts They note that the decline in consumption is likely to make it more difficult for any future interest rate hike by the Bank of Canada.
Notable Statements:
The wildfires may be taking a few decimal places off the data, but the Canadian economy is barely smoldering in terms of growth, casting doubt on claims it can shrug off the impact of higher interest rates.
After what appears to have been a preliminary quarter, GDP contracted in the second quarter, making the latest rate hike look over the top, and all but ruling out another hike next week.
To this dismal report must be added the advance estimate of GDP for July, which suggests a flat month after the decline in June, setting the stage for a weak third quarter in which the increase in the unemployment rate will probably weigh even more. on consumer activity.
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
