Canada’s economy slowed more than expected in the second quarter, raising the likelihood that the Bank of Canada will leave rates unchanged at next week’s policy meeting. Statistics Canada reportedthat real GDP dipped 0.2% in the second quarter, against estimates for a 1.2% rise. That’s also well below the Bank of Canada’s official GDP forecast for 1.5% growth in both Q2 and Q3. “The small pullback in Q2 GDP lines up well with the recent rise in the unemployment rate, and reinforces the point that growth is cooling markedly, even when looking through the many special factors in recent months,” wroteBMO chief economist Douglas Porter. Monthly growth in June also came in lower than expected, similarly falling 0.2%. StatCan’s flash estimate for July is for growth to flatline. The decline included weakness in both goods (-0.4%) and services (-0.2%). “This combination gives a weak handoff and a soft start to Q3,” Porter added. “In stark contrast to the U.S. economy—where the debate is seemingly over whether it will be a soft landing or a no landing—it looks like Canada is already having a bit of a bumpy landing. Source: canadianmortgagetrends https://www.mortgageweb.ca/en-US/16943
