Canada In Technical Recession Based On Advanced StatCan Estimate

The economy in Canada is so strong that it appears we have entered a technical recession based on preliminary data provided by Statistics Canada this morning in its August 2023 update for gross domestic product by industry.

The agency indicated within the report an advanced estimate for real GDP for September and Q3 2023 that states that real GDP by industry was essentially unchanged in September, as was the third quarter of 2023. Three straight months of flat output, beginning in July, suggests a decline of 0.1% on an annualized basis, and follows a decrease of 0.2% in the second quarter.

Those subsequent declines point to a technical recession being entered into, based on two consecutive quarters of negative growth in real GDP. It also highlights that the Bank of Canada – who sets Canada’s interest rate policy – was substantially short on its estimate for 0.8% growth in the third quarter, an estimate that was released just days ago in its Monetary Policy Report.

Source: Bank of Canada

The data for the third quarter, as a result of being an advanced estimate, is of course subject to revision.

Real GDP meanwhile for the month of August 2023 was unchanged, with services producing industries up 0.1% in the month, while goods-producing industries contracted by 0.2%, which shook out to a 0.0% monthly change.


Information for this story was found via StatCan and the sources mentioned. The author has no securities or affiliations related to the organizations discussed. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

Leave a Reply

Video Articles

Endeavour Mining Q1 Earnings: Cash Flow Is King

G Mining Oko West Feasibility: Move Fast, Break.. Nothing?

New Gold Q1 Earnings: What’s Behind The Market’s Surprising Reaction?

Recommended

Giant Mining Encounters Native Copper As Hole MHB-34 Hits 563 Metres Depth

Verses Hits Commercialization Stage With Genius AI Platform

Related News

Chinese Interference: RCMP Probe Death of a Chinese Dissident in BC

The chilling death of Wei Hu, a 57-year-old BC resident, has now caught the attention...

Friday, September 22, 2023, 02:58:00 PM

Canadian Consumer Confidence Jumps to Record-High Amid Strong Vaccine Rollout

Consumer confidence appears to be accelerating across Canada, amid the ongoing vaccine rollout that is...

Saturday, May 22, 2021, 11:09:00 AM

Inflation Rises to 0.5% in September But Price Pressures Remain Subdued

It appears that inflation has finally hit Canada, but price pressures still remain restrained as...

Wednesday, October 21, 2020, 02:45:00 PM

Americans’ Inflation Expectations Fall to Lowest Since April 2021

With the latest University of Michigan consumer survey published on Friday, all eyes were on...

Saturday, January 14, 2023, 01:31:00 PM

Ottawa’s ‘Luxury Tax’ Just Kicked In, But Why Only On Selected ‘Luxuries’?

Canadians faces new and higher dues as Ottawa’s tax plan levied on high-priced possessions took...

Friday, September 2, 2022, 10:20:00 AM