GDP growth for the third-quarter was also revised down.
There is more evidence that Canada’s economy is slowing.
According to Bloomberg, “Canada’s economy decelerated more than expected in the second half of last year, amid signs indebted households have begun slowing down spending.”
GDP grew by 1.7% in Q4, lower than the estimate of 2.0%.
Q3 GDP was revised down to 1.5%, after being initially reported at 1.7%.
Both Q3 and Q4 GDP were a sharp decline from the first half of the year.
Yet, even that Q4 number is worse than it first appears:
“What may be worse is that fourth-quarter GDP figures were exaggerated by temporary factors in housing. Spending on residential structures surged in the last three months of 2017 to an annualized 13.4 per cent, the strongest quarterly increase since 2012. The gain was led by stronger-than-expected new home construction, and as buyers rushed to get ahead of tighter mortgage qualification rules that came into effect Jan. 1.”
This new awareness among more of the media regarding the weakness of Canada’s economy under the Trudeau government is something I’ve been saying for some time.
In an uncertain global economy – where our trade relationships with allies in the US and India are deteriorating – strengthening our domestic economy is essential to reducing our vulnerability.
That means fewer regulations, eliminating the carbon tax, restricting takeovers by foreign state-run companies, increasing investment in our domestic defence industry, and reducing personal taxes.
The government has done the opposite, and as a result, Canadian consumers are overburdened and our businesses are strangled – leaving our nation at the whim of uncontrollable foreign forces in a dangerous world.