Ottawa, Canada – Canada’s economy is facing difficulties as it heads into the last quarter of the year. Recent reports show that the country’s GDP growth has slowed to just over 1% for the third quarter, down from 2.1% in the previous quarter. This drop is surprising given the growing population and three recent interest rate cuts by the Bank of Canada.
The central bank had initially expected a growth rate of 2.8% for this quarter but is likely to change its forecast based on the new data. Concerns are rising as consumer spending and business activity have also declined. Factory sales fell by 0.8% in August, and wholesale trade dropped by 0.7%. Additionally, Canada’s overall economic output remained nearly the same in August after a small increase in July.
The job market shows mixed signs. The unemployment rate went down to 6.5% in September, but fewer people are looking for jobs, which could indicate some discouragement among job seekers. Economists warn that Canada is experiencing significant economic challenges, similar to those seen during the oil price crash in 2015.
In light of these issues, analysts believe the Bank of Canada may consider further interest rate cuts to encourage growth, especially with a federal election coming up that could lead to more government spending.
Furthermore, Canada is dealing with a diplomatic disagreement with India, which could also affect the country’s economic recovery.
