Canada's Economic Roller Coaster: Q3 Growth Misses Expectations

Canada's GDP grew by 1% annually in Q3, driven by household and government spending. The growth fell short of 1.5% expectations, with business investments and exports lagging. Markets anticipate a 50 basis point rate cut in December. Per capita GDP shrank by 0.4%, marking a continued decline.

Canada's economy recorded a 1% annualized growth in the third quarter, according to released data, fueled by household and government spending, though dampened by sluggish business investments and exports.

Statistical reports revised the second quarter's growth, while currency markets adjusted rate cut expectations following the data release. The employment report is expected to influence the Bank of Canada's December monetary policy decision.

The bank has reduced interest rates four times to stimulate growth. Canada's GDP per capita shrank by 0.4% in Q3, continuing a trend of economic contraction. Analysts argue that without government spending and increased population, a recession might have ensued.

(With inputs from agencies.)