CANADA'S LEADING INFORMATION SOURCE FOR THE METALWORKING INDUSTRY

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CANADA'S LEADING INFORMATION SOURCE FOR THE METALWORKING INDUSTRY

CANADA'S LEADING INFORMATION SOURCE FOR THE METALWORKING INDUSTRY

Canadian economy staves off recession in 2023

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Economists are now hopeful the Bank of Canada will pull off a soft landing for the economy with inflation brought under control with high interest rates without a significant drop in economic output or rise in unemployment. PHOTO courtesy Heddle Shipyards.

Real gross domestic product (GDP) edged up 0.2% in the fourth quarter of 2023, following a 0.1% decline in the third quarter.  The economic growth in the final three months of the year staved off a recession for the Canadian economy since two straight quarters of negative growth were avoided despite the sluggish year of economic activity.

Outside of 2020, real GDP in 2023 rose at its slowest pace since 2016.

Statistics Canada’s preliminary estimate for January GDP growth indicated the economy also started the new year off with a smal (0.4%) growth spurt. Economists are now hopeful the Bank of Canada will pull off a soft landing for the economy with inflation brought under control with high interest rates without a significant drop in economic output or rise in unemployment. The same, but to a greater degree, is expected of the U.S. economy.

Looking specifically at manufacturing in December, activity contracted 0.4%, partially offsetting the gain recorded in November, with both non-durable goods manufacturing and durable goods manufacturing contributing to the decline.

The transportation equipment manufacturing subsector (-3.1%) was the largest contributor to the decline in December, recording its largest monthly decrease since September 2021, due to production slowdowns for retooling in multiple Ontario assembly plants.

 

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