Toronto (Canada), February 28 (.).- The Canadian economy stagnated in the last quarter of the year after contracting by 0.1% in December, according to data published on Tuesday by the public agency Statistics Canada (THIS).
In the last three months of 2022, gross domestic product (GDP) growth was flat.
The Bank of Canada had forecast growth of 1.3% in the quarter, although it also forecast stagnation in the first three quarters of 2023.
This is the first time since the third quarter of 2021 that Canada’s GDP has not recorded growth.
Data from the EC also indicates that business spending on machinery and equipment fell 7.8% last quarter, the second consecutive drop in the level of business investment.
In addition, household spending rose 0.5% during this period, after declining 0.1% in the third quarter.
The figures for the last three months of 2022 allow the Bank of Canada to keep interest rates unchanged when announcing its next decision in March.
From January to December 2022, the Bank of Canada raised interest rates by 0.25 to 4.25% to contain inflation, which reached 8.1% in June last year.
In January this year, the monetary authority raised another quarter of an interest point, which now stands at 4.5%.
In February 2023, inflation fell to 5.9%, the first time since February 2022 that it has been below 6%.
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