Canada’s economy grew for the first time in four quarters between July and September, signaling the country’s first recession since 1992 has ended.
Gross domestic product expanded at a 0.4 percent annualized rate in the third quarter, Statistics Canada said today in Ottawa. Economists surveyed by Bloomberg News forecast a 1 percent annualized gain, based on the median of 19 responses. The second- quarter decrease, initially reported at 3.4 percent, was revised to a 3.1 percent annualized drop.
To revive demand, Prime Minister Stephen Harper is planning a record C$55.9 billion deficit ($52.9 billion) and Bank of Canada Governor Mark Carney plans to keep his main lending rate at a record 0.25 percent through June. Carney has said the recovery may take longer than from past recessions, with unemployment weighing on consumer spending, lower business investment and a strong currency that will hamper exports.
Read Greg Quinn’s full article “Canada Economy Grew at Less-Than-Expected 0.4% 3rd-Quarter Pace” in Bloomberg (November 30, 2009).