Canadian economy affected due to commercial battle | Bloomberg
The commercial battle has reached such a level that it has slowed investment and thus affected the Canadian economy.
The commercial uncertainty has increased during the summer. In fact, it seems that it has affected Canada’s economy in the third quarter. This led households to reduce consumption and companies to drastically reduce investment.
During Friday, data was published by Statistics Canada. These data show that consumer spending grew at the slowest pace in more than two years. While on the other hand, the companies registered an unexpected fall in the investment and reduced their inventories.
Generally speaking, the economy grew at an annualized rate of 2 percent, largely due to a better commercial image as imports declined. Meanwhile, domestic demand, which excludes trade, was the weakest in more than two years. This is because it has registered a slight contraction.
The chief economist of CIBC World Markets, Avery Shenfeld, in a note to investors has said, “Canada had a mediocre third quarter, with some worrying details about what is coming”, he added, “These are not the type of numbers that support a rate hike in December “.
The Canadian dollar changed shortly after the report, trading 0.2 percent weaker on the day at C $ 1.3303 per US dollar at 9:10 a.m. Toronto time.
It should be noted that the economy had done relatively well, even in the face of higher interest rates. In fact, it saw a notorious growth in a Group of Seven, 3.1 percent in 2017, and expanded at a healthy pace of 2.3 percent in the first half of this year, in part because to greater business investment.
While on the other hand, the increase of the gross domestic product of the third quarter slowed down of a rate of 2.9 percent in the second quarter.