Summary
Canada's economy grew by 2.6% in the third quarter of the year, mainly due to increased crude oil exports and government spending. Business investments and household spending were lower than expected, partly because of concerns about U.S. tariffs. Economists believe that the Bank of Canada is unlikely to change interest rates soon due to the current economic conditions.
Key Facts
- Canada’s economy grew 2.6% in the third quarter of the year.
- This growth was higher than the 0.5% predicted by analysts.
- Crude oil exports increased by 6.7%, boosting economic activity.
- Government investments grew by 2.9%, including increases in spending on weapons and infrastructure.
- Business investments remained unchanged, and consumer spending dropped slightly.
- Economists suggest the growth might not reflect true economic strength due to reduced imports.
- Concerns about U.S. tariffs contributed to lower business and consumer confidence.
- The Bank of Canada is expected to maintain its interest rate at 2.25% for now.
