Statistics Canada had predicted 1.6% annualized growth in Q4 of 2022.
Canadian GDP fell 0.1% in December of 2022, ending the year on a sour note.
Growth was flat for Q4 of 2022.
Statistics Canada had predicted 1.6% annualized Q4 GDP growth, a prediction that turned out to be inaccurate.
The decline in growth comes as higher interest rates have an increasing impact on Canadian consumers – who are among the most highly indebted in the world.
As noted by Statistics Canada, there was growth in the public sector – including healthcare and social assistance:
“The public sector rose 0.4% in December, up for the 11th consecutive month as all sectors increased. Health care and social assistance (+0.4%) contributed the most to the growth as all subsectors posted gains. Educational services and public administration were also up in December.”
With the private sector economy struggling, an increase in government spending – fuelled by debt – is a less than ideal way to generate growth.
Spencer Fernando
