The Canadian economy did not grow in August and likely slipped into a technical recession in the third quarter, new data released Tuesday by Statistics Canada showed.
Advance estimates suggest that the nation’s gross domestic product (GDP) shrank by 0.1% during the third quarter, marking the second consecutive quarter of negative growth and, as such, tipping the economy into a “technical recession.”
This conflicts with recent estimates from the Bank of Canada which projected 3Q growth of 0.8%.
During August, Canada’s GDP was flat over the previous month and, overall, eight of 20 industrial sectors increased, the data from Statistics Canada showed.
The agency said this was due to higher interest rates, inflation, forest fires, and drought conditions weighing on the economy.
Wholesale trade, mining and manufacturing were among the sectors that grew during the month, as accommodation and food services, retail, and agriculture, forestry and fishing contracted.
Advance estimates suggest growth will also remain flat in September as decreases in mining, quarrying, and oil and gas extraction and utilities were partially offset by increases in the construction and public sectors.
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