Canada’s economy grew in the third quarter at the fastest pace in two years amid a gain in consumer spending and rebounds in business investment and inventories.
Gross domestic product rose at a 2.7 percent annualized pace to C$1.7 trillion ($1.6 trillion) from July through September, following a revised 1.6 percent advance in the prior three months, Statistics Canada said Friday in Ottawa. Economists forecast 2.5 percent growth, according to the median of a Bloomberg survey with 20 responses.
The world’s 11th-largest economy may need another two years to use up slack after a period of weaker global growth that hobbled exports and investment. The figures show that Canadian consumer spending rose at a 1.7 percent annualized pace in the third quarter after a 3 percent rate in the previous three months, Statistics Canada said. Inventories rose C$4.8 billion from July through September, including C$4.1 billion of farm products, the highest in records back to 1981. Wheat and canola stockpiles increased after a good growing season.
The third-quarter expansion exceeded the central bank’s forecast last month for 1.8 percent growth. The bank projects a 2.3 percent increase in the fourth quarter.
“While this is encouraging news and shows we are on the right path, we must remember that the global economy remains fragile and that slower global growth will impact Canada,” said Finance Minister Jim Flaherty.
Gross domestic product rose at a 2.7 percent annualized pace to C$1.7 trillion ($1.6 trillion) from July through September, following a revised 1.6 percent advance in the prior three months, Statistics Canada said Friday in Ottawa. Economists forecast 2.5 percent growth, according to the median of a Bloomberg survey with 20 responses.
The world’s 11th-largest economy may need another two years to use up slack after a period of weaker global growth that hobbled exports and investment. The figures show that Canadian consumer spending rose at a 1.7 percent annualized pace in the third quarter after a 3 percent rate in the previous three months, Statistics Canada said. Inventories rose C$4.8 billion from July through September, including C$4.1 billion of farm products, the highest in records back to 1981. Wheat and canola stockpiles increased after a good growing season.
The third-quarter expansion exceeded the central bank’s forecast last month for 1.8 percent growth. The bank projects a 2.3 percent increase in the fourth quarter.
“While this is encouraging news and shows we are on the right path, we must remember that the global economy remains fragile and that slower global growth will impact Canada,” said Finance Minister Jim Flaherty.
