Canada: Minor Economic Shrinkage in October, 2019

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As reported by the CBC News, the economic of Canada reduced by a tenth of one percent in October of 2019.

The economic condition for Canadians remains quite strong with the 10th largest economy in the world, according to Business Insider. Not only this, its oil reserves may exceed the Middle East. (However, this may become less relevant into the future with the rather rapid and predicted transition into renewable energy sources in the 2020s, 2030s, and further into the future.

With a shrinkage of the real Gross Domestic Product of GDP of the Canadian economy, based on reportage by Statistics Canada, this will be the first decline in the last 8 months of either economic stabilization, as in July, or growth, as see in, for example, May, June, August, and September with growth percentages of 0.3%, 0.2%, 0.1%, and 0.1%.

The economy, how ever slight, appears to show a several month slowing of the growth rate of the economy. The projection was a 0.0% growth rate of the Canadian economy in October in September. This did not play out.

With the manufacturing sector in Canada down for the 4th time in 5 months, this impacted the growth of the Canadian economy.

As reported, “The United Auto Workers (UAW) strike in the U.S. caused Canada to scale back production contributing to the decline. Retail trade declined 1.1 per cent—it’s largest decline in three years, while wholesale trade declined one per cent.”

However, oil production increased by 0.1% and real estate by 0.7%. So, we had a rapid growth in real estate, minor growth in oil production, and an overall decrease in the economy where a prediction was for a halted economy for October.

Photo by Markus Spiske on Unsplash

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