Canada’s economy is growing, but don’t let the headline data fool you—the country is still heading for recession. Statistics Canada (Stat Can) gross domestic product (GDP) data showed big growth in Q3 2022. However, taking a dive past the headline number reveals things aren’t as great as they might appear. Household spending made a rare contraction, and business spending was mixed. The economy is strong enough for rate hikes to cool inflation, but not strong enough to avoid recession.
Canada’s GDP Growth Was Stronger Than Expected
Canada’s GDP showed strong headline growth, which sounds great at first glance. Monthly growth came in at 0.1% for September, inline with estimates. Annualized quarterly growth hit 2.9% for Q3, nearly doubling the expectations. Energy was the big driver of the trend, representing much of the growth. The rest of the economy isn’t doing so hot,…
