Canadian economy crawled forward by 0.3 per cent in August

GDP figures ward off recession fears but signal slow rebound

Canadian GDP grew for a third straight month in August, expanding by 0.3 per cent from July, signaling that the economy is not at risk of falling into recession, but that the country will likely see slow growth and a sluggish job market in coming months.Still, the result was better than analysts expected. “Today’s data implies stronger third-quarter growth than the 2 percent that the Bank of Canada had assumed in its most recent Monetary Policy Report,” Paul Ferley, assistant chief economist at Royal Bank of Canada, told Reuters. Most of the monthly growth is believed to be linked to a strong performance in the energy sector, particularly oil and gas extraction.


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