Canada’s GDP Expands 0.2 Percent In October
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Canada’s economy expanded by 0.2% in October, Statistics Canada reported on Wednesday. The agency said the bulk of the gross domestic product growth came from real estate activities. The 0.2% GDP growth rate, though, was below analysts’ expectations.
Aside from the property sector, the retail and wholesale trade, tourism, goods manufacturing and construction improved, while declines were reported in the finance and insurance and mining industries. Since sales of existing homes experienced a boom in October, the real estate sector logged a 7.2% growth.
Utilities also registered a healthy 2.4% expansion, while the other sector had minor gains of less than one percent. The cold weather was the cause of the hike in utilities sector growth as demand for electricity and natural gas went up.
Toronto Dominion Bank economist Dina Cover said that Canadians expect the broad-based growth they have witnesses the past few months to continue into the fourth quarter and next year. But she added industries such as construction, manufacturing and related services – which are more vulnerable to recession – would likely experience more improvement during the recovery phase.
Cover wrote in a commentary, “While it is clear that the recovery is underway, it will be much more muted than what is typically seen after a recession so deep.”