Canadian Economy’s Slow Growth: A Mixed Economic Picture
Canada’s economy, growing at an annualized rate of 1% in Q4, aligns with the central bank’s expectations, yet reveals underlying weaknesses. Despite exceeding forecasts, this growth, driven by global factors like robust U.S. spending, masks domestic spending declines and per-capita GDP reduction. The Bank of Canada’s rate hikes have dampened consumer and business spending. While the labor market appears resilient, with low unemployment and high wage growth, other data suggest weakening conditions. Inflation’s decline to 2.9% offers some relief, but the central bank remains cautious, seeking sustainable paths to its 2% target. (CTVNews)