Canadian economy remained flat in Q4, contracted in December

OTTAWA –

The Canadian financial system stayed flat within the fourth quarter following 5 consecutive quarters of development, marking a deeper slowdown than anticipated.

Statistics Canada says actual gross home product was unchanged within the final three months of 2022, regardless of greater family and authorities spending in addition to a stronger commerce place for Canada.

Real GDP was weighed down by a slower accumulation of inventories by companies together with a decline in actual business funding.

The report exhibits a a lot grimmer financial system than forecasters had anticipated as greater rates of interest take a extra noticeable toll on the financial system.

In December, the financial system contracted by 0.1 per cent as goods-producing industries declined.

However, a preliminary estimate from Statistics Canada suggests the financial system bounced again in January with 0.3 per cent development in actual GDP.