The latest GDP numbers shows Canada’s economy has stalled, with mining and oil & gas extraction falling.
Canada’s economy fell short of economists predictions of 0.2% growth in October, instead stalling entirely.
The key factor in the stalled economy was the decline in mining and oil & gas extraction. That sector fell by 1.1%.
According to Reuters,“It was the fourth decline in the sector in five months as non-conventional oil extraction fell, partly due to a loss of capacity during maintenance. Mining also declined by 0.8 per cent.”
The low numbers come as there are increasing concerns about Canada’s housing market (the most unaffordable in 27 years), household debt levels (the highest on earth), and increasing taxes that are all pushing the economy in a dangerous direction.
While the economy has been on a sugar-high from low interest rates and massive borrowing, that is not sustainable forever.
Additionally, the vast majority of Canadians are not experiencing the benefit of economic growth, as repeated surveys shows widespread pessimism about the future of our economy.
Making matters worse, the government continues to increase taxes and increase regulations, while implementing policies that reduce the bargaining power of individual workers, which drives people further into debt.
With interest rates expected to continue climbing, Canada is headed for some serious economic trouble.