Canada economy Financial News

Canada’s economic growth was “essentially unchanged” in July, Statistics Canada said Friday, but there were signs growth was returning later in the third quarter.

Stubborn inflation might not warrant another interest rate hike, but could mean the Bank of Canada keeps its policy rate higher for longer, according to new forecasts released this week.

Statistics Canada says retail sales rose 0.3 per cent to $66.1 billion in July, helped by the strength of sales at supermarkets and grocery stores.

The national unemployment rate was unchanged at 5.5 per cent in August amid a gain of 40,000 jobs, Statistics Canada said Friday.

This year, September in Canada means two things: pressure ramping up on the Toronto Blue Jays as they chase an elusive wild card spot for a berth in the MLB postseason; and economists crunching numbers to revise their forecasts of how steep a decline the economy could soon face.

Statistics Canada said Friday.The economy contracted 0.2 per cent annually in the quarter, the agency said, which was enough for some economists to believe the Bank of Canada would keep its key interest rate on hold at its next decision Sept. 6.StatCan also revised down its earlier GDP figures for the first quarter to 2.6 per cent growth, down from 3.1 per cent.The pullback in the second quarter came as housing investment fell 2.1 per cent to post its fifth consecutive quarterly decrease.New construction dropped 8.2 per cent in the quarter, while renovation spending also fell 4.3 per cent.While Canadians spent more overall in the quarter, StatCan noted that on a per-capita basis, spending was down 0.7 per cent in Q2.An early estimate by the agency had estimated Q2 growth at an annualized rate of one per cent.

Wildfires have displaced residents and restricted travel in some areas across Canada this summer just as the country looks to revive tourism business after years of pandemic-related restrictions.

Canadian millennials, particularly those who own a home, are set to face steep interest costs and economic damage in the months ahead, according to a new report from RBC.

inflation fight, but experts warn it could also mean a steeper downturn domestically this fall.The early stages of China’s rebound from the COVID-19 pandemic spurred hope for a stronger global recovery at the start of this year, but recent months have seen some economic forecasters slash expectations for the world’s second-biggest economy.Here’s a look at what’s behind China’s faltering economy and the ripple effects it could have in other countries.China stocks fell to around nine-month lows on Monday as investors reacted to milder-than-expected measures by authorities to boost confidence in the economy, with sluggish recovery, high youth unemployment and property woes keeping sentiment fragile.Economic output and consumer spending came in below expectations in July, coming off one of China’s weakest quarters for annualized growth in decades.Jimmy Jean, Desjardins’ chief economist, said in a note on Aug. 11 that slowing foreign-direct investment, Western trade restrictions and a trend of multinational corporations reconfiguring their supply chains away from China post-COVID are all compounding to hamper growth.“We were always skeptical of the narrative that China’s reopening would save the global economy this year,” he wrote.

Forecasters have had an eye out for a recession for months, but it has yet to happen as the Canadian economy has proven resilient in the face of high inflation and rising interest rates. 

Canada’s economy kept growing in May, but early signs of a long-awaited slowdown started to appear in June, according to Statistics Canada.

Statistics Canada says retail sales rose 0.2 per cent to $66.0 billion in May, helped by gains at new car dealers and grocery stores.

The Bank of Canada has shifted to a less prescriptive messaging strategy than it used in January when it signaled a rate-hike pause that reignited the housing market, which added to inflation and the need to resume tightening five months later.

The Bank of Canada has raised its benchmark interest rate by another 25 basis points, bringing it to levels not seen since 2001 amid fears the decline in inflation “could stall.”

Canada’s unemployment rate rose to 5.4 per cent in June even as the country’s employers kept hiring, according to Statistics Canada.