The Canadian economy expanded by 0.4 per cent. That is below Statistics Canada's original preliminary estimate of 0.7 per cent and follows a slight contraction in July. The continued easing of restrictions was a main driver of growth in August, with increases in the accommodation and food service, retail trade and transportation sectors making strong contributions.
However, Statistics Canada's preliminary estimate for September GDP is showing flat growth, which points to overall third quarter growth registering about 2 per cent on an annualized basis, in line with third quarter growth in the United States and well under the Bank of Canada's more rosy forecast of 5.5 per cent. The middle quarters of 2021 have been fairly disappointing in terms of economic growth, with the economy contracting in the second quarter and underwhelming in the third. However, we anticipate that the economy will bounce back in the fourth quarter with Canadian real GDP expanding 4 per cent and carrying momentum into 2022.
For more information, please contact: Gino Pezzani.