Toronto (Canada), Oct 28 (EFE).- Canada’s gross domestic product (GDP) increased by 0.1% in August, a growth similar to that recorded in the previous two months, thanks to the services sectors, according to data published this Friday by the public body Statistics Canada (EC).

Data from the EC indicates that services-producing sectors rose 0.3% in August while those producing goods fell 0.3%.

Preliminary data indicate that the Canadian economy recorded another 0.1% growth in September.

Activity in the retail sector increased by 1.2%. The EC described the growth as “considerable” since in July activity in this sector had reduced to levels equivalent to those of December 2021.

Also in August, sales at gas stations nationwide rose 6.9% after three straight months of decline. The increase in sales coincided with a 9.6% reduction in gasoline prices.

The EC data is in line with forecasts from the Bank of Canada, which warned this week that it expects economic growth to stagnate through the end of the year and into the first half of 2023, as effects of high interest rates are spreading across the country.[…]the entire Canadian economy.

The central bank estimates GDP will grow 3.4% this year but slow to less than 1% in 2024 and 2% in 2024.

Since the beginning of 2022, the Bank of Canada has embarked on an aggressive policy of raising interest rates in an attempt to control high inflation which reached 8.1% in June.

The central bank on Wednesday raised rates for the sixth straight time so far this year and warned it would need further hikes in the coming months to bring inflation back to around 2%.

This year, interest rates in Canada have risen from 0.25% to 3.75%.

(c) EFE Agency