News Details

Canadian economy shrinks 1.1% amid decline in energy exports

Canada

Electrical Machinery & Apparatus

01-12-2023

Canada’s economy shrank 1.1 per cent in the third quarter of the year, new data show. Statistics Canada said a decline in international exports and slower stock accumulation by businesses were behind the shrinkage. Increases in government spending and investment in housing partially offset the declines, the agency added. Exports fell 1.3 per cent, StatCan said, following a 1.3 per cent increase in the second quarter. The main contributor to the decline was refined petroleum energy products, the export of which decreased by 25.4 per cent. Overall imports also fell, though by only 0.2 per cent. The main contributors to the decline in imports were clothing, footwear, transport services and electronic equipment.

 

There was an increase in car and truck imports, however. Worker pay, meanwhile, increased 1.3 per cent across Canada in the third quarter. The increase in British Columbia was 1.9 per cent. BMO's chief economist, Douglas Porter, said the "mixed report" indicates that the Bank of Canada "is done hiking rates, but doesn't really advance the cause for rate cuts." He added: "There are plenty of unexpected cross currents in today's release, but the big picture is that the Canadian economy is struggling to grow, yet managing to just keep its head above recession waters."