The Financial Post reports in its Saturday, Nov. 29, edition that economists warn that the Canadian economy is struggling despite stronger-than-expected third quarter growth.
The Post's Gigi Suhanic writes that the GDP for the third quarter increased by 2.6 per cent annualized, surpassing the 0.5-per-cent growth estimate. However, some economists believe the report's details suggest a less optimistic outlook. The estimate for October suggests GDP growth shrank 0.3 per cent, reversing a monthly gain of 0.2 per cent in September.
Some economists believe the economy might shrink in the fourth quarter, missing the Bank of Canada's 1-per-cent growth estimate. Oxford Economics notes that while GDP growth exceeded expectations, a significant drop in imports masked weakness in domestic demand, as households and businesses reduced spending.
Imports of goods and services saw a 2.2-per-cent decline in the third quarter, the largest since the fourth quarter of 2022, while exports rose 0.2 per cent after a 7-per-cent drop in the second quarter.
Oxford Economics says exports did not rebound significantly and that the GDP increase is more a "mathematical boost" than an indicator of strength.
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