The Canadian economy declined 0.1% in the last month recorded, after being stagnant in the previous month.
Canada’s economy shrank by 0.1% in August, following a stagnant July.
It’s the first monthly drop in the economy since October of 2016.
As noted by BNN, CIBC Economist Nick Exarhos said “All told, a weak result has us on track to see the deceleration in growth in Q3 that we were expecting, to less than half the pace seen in Q2. That justifies the Bank of Canada’s current wait-and-see approach after two quick hikes.”
Manufacturing fell by 1.0, in large part due to a massive 7.3% drop in chemical manufacturing. That drop was the largest fall in 20 years, due to the shutdowns of plants and weak demand for exports.
The August decline is the latest in a growing list of evidence that Canada’s economy is not nearly as strong as the Trudeau government is claiming. This is leading the Bank of Canada to express more caution on future interest rate hikes, as Canadian households facing record indebtedness are already burdened by increased taxes and a higher cost of living.
While the world economy is growing, that growth is quite slow in many areas, and Canada’s government is crippling our ability to grow by increasing the size of government and imposing more regulations.
With those damaging economic policies expected to remain in place as long as Trudeau is in power, slowing growth will become the new normal for Canada’s economy until we get a new government.