Economics
Record Canada Expansion Meets Reality of Second Virus Wave
- Third-quarter growth comes in at 40.5% but momentum is fading
- Surge in imports weighs on expansion; business investment lags
A pedestrian walks past a holiday display at a Toronto department store on Nov. 23, after the start of a fresh lockdown in Canada’s financial capital and one of its suburbs.
Photographer: Cole Burston/BloombergThis article is for subscribers only.
The Canadian economy roared back to life in the third quarter, recording its biggest ever expansion, but it was a smaller than expected increase and early data show the momentum is quickly fading.
Gross domestic product rose by an annualized 40.5% in the July to September period, Statistics Canada reported Tuesday in Ottawa, erasing much of the record 38.1% drop in the second quarter. Economists were predicting a 48% increase. The rebound brings total output to 95% of pre-pandemic levels.