Real GDP per capita declines for 6th consecutive quarter, household savings rise
OTTAWA –
The Canadian economy shrank on a per-person basis for a sixth consecutive quarter as higher interest rates continued to weigh on business investment.
Statistics Canada’s gross domestic product report said the economy grew at an annualized rate of one per cent in the third quarter, down from 2.2 per cent in the second quarter.
Economists reacting to the latest GDP figures continue to be divided on whether the Bank of Canada will cut its key interest rate by a quarter or half a percentage point at its meeting next month.
TD director of economics James Orlando wrote in a client note that even though growth came in lower than the central bank’s forecast, “the momentum in the economy should be sufficient evidence for the (Bank of Canada) to scale back the pace of cuts.”
