Economists expected 1.8% annualized growth over the first three months of 2018. Instead, the economy grew at just 1.3%.
As Canada’s economy faces an investment collapse, new tariffs, a competitiveness crisis, and the Trans Mountain debacle, and ongoing damage from increased regulations and the Trudeau Carbon Tax, there is more evidence that the economy is slowing down.
According to Stats Canada, annualized GDP growth over the first three months of 2018 was just 1.3%, far short of the 2017 pace of 1.7% and short of economists predictions of 1.8% growth.
BNN Bloomberg noted that “The rate of growth for real gross domestic product in the first quarter was the slowest pace since the economy contracted in the second quarter of 2016 due to forest fires that destroyed parts of Fort McMurray, Alta., and forced the shutdown of several oilsands operations in the region.”
A key part of the weakened growth was the drop in housing investment, which fell 1.9%. That is the biggest decline in housing investment since early 2009.
Much of the data is concerning, with housing investment growing at the snails pace of just 0.3%, and export growth coming in at just 0.4%.
Considering inflation and population growth, those tiny increases are incredibly weak.
Stats Canada adjusted their reading of second and third quarter GDP growth in 2017, saying the Q2 rate was 4.6%, while the Q3 growth rate was adjusted from 1.5% to 1.7%.
But now, in Q1 of 2018, the numbers aren’t looking good. The failed economic policies of the Trudeau government are taking their toll, and our economy is heading for trouble.
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