Your Business News
Canadian economy grew by 0.1% in November
January 31, 2023
Authored by RSM Canada LLP
Edwin P. Reilly, CPA, CA shared this article
REAL ECONOMY BLOG | January 31, 2023
Canada’s gross domestic product edged up by 0.1% in November, the same rate of growth as October, as tightened monetary policies continued to slow the economy.
For last three months of 2022, average growth was 1.6% annualized, down from 2.9% in the previous quarter, Statistics Canada reported on Tuesday.
Slower growth largely fell within the expectations of the Bank of Canada and the markets as recent data on sales, production and the labor market indicated.
While the GDP number suggested that the economy has been getting closer to a potential recession, the declines in demand and economic activity will most likely vary across sectors and industries.
A goods recession might have begun as the goods-producing sector posted two consecutive months of declines from October to November. With interest rates remaining restrictive, we should expect the sector to fall further.
On the other hand, the service sector stayed above water, continuing to grow at a solid pace of 0.2% in November.
Looking ahead, manufacturing, management, retail and real estate trade services are now sectors that have the highest risks of falling into a recession because they are highly sensitive to rate hikes.
On the contrary, health care, transportations and professional services have been growing steadily, most likely avoiding a “hard landing” in the coming months.
We are comfortable with our call for a recession as early as the second quarter, yet it would be a mild recession compared to the previous two, barring any unforeseen economic shocks.
Let's Talk!
Call us at 1 855 363 3526 or fill out the form below and we'll contact you to discuss your specific situation.
This article was written by Tuan Nguyen and originally appeared on 2023-01-31 RSM Canada, and is available online at https://realeconomy.rsmus.com/canadian-economy-grew-0-1-in-november/.
RSM Canada Alliance provides its members with access to resources of RSM Canada Operations ULC, RSM Canada LLP and certain of their affiliates (“RSM Canada”). RSM Canada Alliance member firms are separate and independent businesses and legal entities that are responsible for their own acts and omissions, and each are separate and independent from RSM Canada. RSM Canada LLP is the Canadian member firm of RSM International, a global network of independent audit, tax and consulting firms. Members of RSM Canada Alliance have access to RSM International resources through RSM Canada but are not member firms of RSM International. Visit rsmcanada.com/aboutus for more information regarding RSM Canada and RSM International. The RSM trademark is used under license by RSM Canada. RSM Canada Alliance products and services are proprietary to RSM Canada.
FCR a proud member of RSM Canada Alliance, a premier affiliation of independent accounting and consulting firms across North America. RSM Canada Alliance provides our firm with access to resources of RSM, the leading provider of audit, tax and consulting services focused on the middle market. RSM Canada LLP is a licensed CPA firm and the Canadian member of RSM International, a global network of independent audit, tax and consulting firms with more than 43,000 people in over 120 countries.
Our membership in RSM Canada Alliance has elevated our capabilities in the marketplace, helping to differentiate our firm from the competition while allowing us to maintain our independence and entrepreneurial culture. We have access to a valuable peer network of like-sized firms as well as a broad range of tools, expertise, and technical resources.
For more information on how FCR can assist you, please call us at 1 855 363 3526