Canada’s economy is weaker than many analysts had predicted.
In the latest sign that Canada’s economy is weakening, GDP shrank by 0.1% in January according to Statistics Canada.
This missed expectations, as a poll of analysts by Reuters showed a prediction of 0.1 growth.
Reuters called the report “a clear sign that first-quarter growth is likely to be weaker than the Bank of Canada had predicted.”
It is expected that the Bank of Canada will revise their prediction of 2.5% growth in Q1 of 2018 to a lower number. They had also predicted 2.5% growth in Q4 of 2017, but the number came in at 1.7% (making many wonder what all these analysts are getting paid for when they keep missing over and over again).
The January decline was led by a fall in the goods producing industries of 0.4%, while oil and gas extraction, mining, and quarrying fell a full 2.7%.
While some predict a rebound in upcoming GDP reports, the trend still appears negative:
As Avery Shenfeld of CIBC Economics told Reuters, “We expect a bounceback in February and March GDP, but we’re going to revise down our first quarter GDP forecast to sub 2 per cent, adding weight to our view that the Bank of Canada is on hold until July.”
While much of the media has been slow to pick up on the trend of a weakening economy, Canadians have been feeling it for some time. With an increased tax burden, energy costs and regulations choking the life out of families and businesses, investment collapsing, and uncertainty everywhere, Canada’s economy is suffering under the policies of the radical-left Liberal/NDP regimes in power at the federal level, and in many provinces.