REPORT: Canadian GDP Growth Slows To Lowest Level In 2 Years

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.

Spencer Fernando

Photo – YouTube

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Bill Choi

Imagine what GDP growth would be without a pipeline to the ocean

Shawn Harris

These results shouldn’t be such a shock as they are what you get when you do everything you can to force businesses to either slow down, divest or leave Canada. Trudeau and Morneau, the dynamic duo of economics have shown us just what they are made up of and it is pretty scary. All ideology and no business or economic sense. What makes these numbers even scarier is that Morneau at least has a proven business record and now seems to have lost not only that but also his mind. Because who would, after having run a very profitable business,… Read more »

Joanne

Sky high taxes, massively big government, a very low loonie, and over regulation. It’s not a surprise the economy is not doing well.
We desperately need a change of government next year, one that will lower taxes and encourage economic growth.

old white guy

I would suggest that there is no growth what so ever in Canada. When government activity is removed from the equation we are negative. Fake numbers are easy to come by when government is involved. The debt and deficit have to factored in, there are many who say no to that, but folks, they are wrong.