Canada’s Economy Shrank 1.1% With Rates Denting Spending
- Stagnation may mean end of rate hikes; traders price in 1Q cut
- Canada ‘managing to just keep its head above recession waters’
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Canada’s economy unexpectedly contracted in the third quarter and consumption flatlined, confirming the central bank’s aggressive interest-rate hikes have slammed the brakes on growth.
Even as preliminary data from Statistics Canada suggest gross domestic product rose 0.2% in October, after a better-than-expected 0.1% expansion the month before, Thursday’s report points to an economy that has substantially weakened.