Canadian economy remained flat in Q4, contracted in December
OTTAWA — The Canadian economy stayed flat in the fourth quarter following five consecutive quarters of growth, marking a deeper slowdown than anticipated.
Statistics Canada says real gross domestic product was unchanged in the last three months of 2022, despite higher household and government spending as well as a stronger trade position for Canada.
Real GDP was weighed down by a slower accumulation of inventories by businesses along with a decline in real business investment.
The report shows a much grimmer economy than forecasters had anticipated as higher interest rates take a more noticeable toll on the economy.
In December, the economy contracted by 0.1 per cent as goods-producing industries declined.
However, a preliminary estimate from Statistics Canada suggests the economy bounced back in January with 0.3 per cent growth in real GDP.