Consumers are also cutting back on spending.
Canada’s economic growth has slowed down to 2%, the slowest rate of growth in the past two years.
A big driver of the decline in growth is a slowdown in consumer spending, which increased by just 1.2%.
Overall domestic demand fell 0.1% in Q3.
Business investment was down 7.1%, while residential investment fell 5.9%.
The struggles facing the Canadian oil industry are also having a negative impact on the economy.
And this is all before the federal carbon tax officially takes effect. The tax has already been implemented in some provinces, and the prospect of Trudeau’s carbon tax has already hurt investment, as our competitive position relative to the United States has fallen precipitously.
Justin Trudeau inherited a strong economy from the Harper Conservatives. The budget was balanced, taxes were low, and there was a great opportunity to build on that foundation. But instead of building on it, the Trudeau Liberals increased taxes, slammed the energy industry with more regulations and restrictions, put Canada massively into deficits, and squandered the good economic position they were given.
Now, Canada’s economy is slowing, the energy sector is fighting for its life, and our debt has surged. The prospect of a crisis is growing.
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