Canadian GDP Growth Hits Half The Estimate, Previous Data Revised Lower

[CdnFox]

https://betterdwelling.com/canadian-gdp-growth-hits-half-the-estimate-previous-data-revised-lower/

 

Canada’s Economy Grew Half The Rate of Preliminary Estimates

Canadian economic output came in much lower than preliminary data implied. Real GDP grew 0.2% in February, 0.1 points below expectations and half of Stat Can’s 0.4% preliminary estimate for the month. 

Canadian GDP Growth Is Hitting A Wall 

Canadian real GDP in chained 2017 dollars.

Strong January Data Gets A Downward Revision 

Speaking of January’s surprise growth, Stat Can made a downward revision to the month. Growth was revised 0.1 points lower to 0.5% in January, boosted temporarily by the end of the public strike in the month. This month’s data and revisions further reinforce the temporary nature of last month’s boost.  

Canadian GDP Growth Is Even Slower Than The BoC Forecast

Looking forward, the agency doesn’t see real GDP growth being quite as resilient. Preliminary estimates for growth are flat for March, with potential gains made in utilities and real estate offset by drops in manufacturing and retail. If the official numbers match when released next month, the first quarter will show real growth of 0.6%, and annualized growth of 2.5%. That’s 0.3 points lower than the Bank of Canada (BoC) most recently forecast.

[CdnFox]

So - HERE's the problem.

Trudeau has driven business away from canada, and our gdp growth is slowing to nothing while our population is growing faster than ever, and can more unemployment be far behind?

So you'd normally combat that by lowering interest rates.  The rates were raised to cool the economy - mission accomplished.  Lowering the rates would help warm the economy back up a bit and get growth happening at least a little.

BUT - Biden is pumping trillions into the US economy to try to make it seem really strong before an election. That is keeping inflation resilient there - which means the US  CANNOT afford to lower it's rates.

So if canada does on it's own - nobody in the world will buy canada bonds at a lower interest rate than ones secured by the US dollar and investors will flee canada and flock south.

So until AT LEAST november and probably more like mid 2025 it's going to be almost impossible for Canada to address the slowing economy effectively, other than by dumping federal money into it which always impacts inflation.

Which means that either our economy is going to go into the crapper or the gov't will put us deeper in debt and keep inflation high which will also mean that our future economy will be even deeper in the crapper.

 

TLDR - we're kind of facked.