Canadian Q4 GDP Weaker Than Expected

GDP growth for the third-quarter was also revised down.

There is more evidence that Canada’s economy is slowing.

According to Bloomberg, “Canada’s economy decelerated more than expected in the second half of last year, amid signs indebted households have begun slowing down spending.”

GDP grew by 1.7% in Q4, lower than the estimate of 2.0%.

Q3 GDP was revised down to 1.5%, after being initially reported at 1.7%.

Both Q3 and Q4 GDP were a sharp decline from the first half of the year.

Yet, even that Q4 number is worse than it first appears:

“What may be worse is that fourth-quarter GDP figures were exaggerated by temporary factors in housing. Spending on residential structures surged in the last three months of 2017 to an annualized 13.4 per cent, the strongest quarterly increase since 2012. The gain was led by stronger-than-expected new home construction, and as buyers rushed to get ahead of tighter mortgage qualification rules that came into effect Jan. 1.”

This new awareness among more of the media regarding the weakness of Canada’s economy under the Trudeau government is something I’ve been saying for some time.

In an uncertain global economy – where our trade relationships with allies in the US and India are deteriorating – strengthening our domestic economy is essential to reducing our vulnerability.

That means fewer regulations, eliminating the carbon tax, restricting takeovers by foreign state-run companies, increasing investment in our domestic defence industry, and reducing personal taxes.

The government has done the opposite, and as a result, Canadian consumers are overburdened and our businesses are strangled – leaving our nation at the whim of uncontrollable foreign forces in a dangerous world.

Spencer Fernando

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4 comments Add yours
  1. I’m getting convinced that StatsCan is taking lessons from UN’s IPCC on how to ‘adjust’ data and computer models. They paint a rosy picture of a worsening economic situation.

  2. Of course spending is slowing down. Christmas bills are coming in to now pay for stuff we don’t need and the realities of carbon taxes being grabbed for no apparent reason are starting to be felt. When idiot Governments take more money then people have less to spend.

    One solution – people are buying less Made in Canada stuff and more from China.

  3. Trudeau’s main mission as was his fathers is to destroy God. That can not be done. They lost the battle between good and evil and are willing to destroy God’s creation. Poor losers. God could also be punishing us for being so stupid as voting Liberal in the first place. Money is in fact illusionary as is debt.
    https://www.bing.com/search?q=the+money+myth+exploded&form=WNSGPH&qs=AS&cvid=ceb51f48df8b4428b585b7f2ab4d82ef&pq=the+money+myth+exploded&cc=CA&setlang=en-US&nclid=D271CDBEE7A9D2D51689C4ABF60450EB&ts=1520114185671

  4. If other Canadians are like my household, and my childrent’s households, we are being extremely frugal. We aren’t buying anything except food and gas for cars……….paying the essentials. This is not the post Christmas paying off gifts. We all decided this year that only children got gifts. …….The problem with stats about inflation is it doesn’t include food and utilities!!!!! With everyone I talk to there is a deep sense of unease. We are being emprovised by Socialism, Trudeau piping us into poverty.

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