The Canadian economy grew 0.5 percent quarter-on-quarter in the third quarter of 2018, following a 0.7 percent expansion in the previous period. The slowdown was mainly due to lower household spending. Expressed as an annualized rate, the GDP advanced 2.0 percent, easing from a 2.9 percent growth in the second quarter and in line with market expectations. GDP Growth Rate in Canada averaged 0.78 percent from 1961 until 2018, reaching an all time high of 3.10 percent in the fourth quarter of 1963 and a record low of -2.30 percent in the first quarter of 2009.

GDP Growth Rate in Canada is expected to be 0.50 percent by the end of this quarter, according to Trading Economics global macro models and analysts expectations. Looking forward, we estimate GDP Growth Rate in Canada to stand at 0.50 in 12 months time. In the long-term, the Canada GDP Growth Rate is projected to trend around 0.60 percent in 2020, according to our econometric models.

Canada GDP Growth Rate
width
height
Forecast Data Chart
Trading Economics members can view, download and compare data from nearly 200 countries, including more than 20 million economic indicators, exchange rates, government bond yields, stock indexes and commodity prices.

The Trading Economics Application Programming Interface (API) provides direct access to our data. It allows API clients to download millions of rows of historical data, to query our real-time economic calendar, subscribe to updates and receive quotes for currencies, commodities, stocks and bonds.


Calendar GMT Actual Previous Consensus TEForecast
2018-03-02 01:30 PM GDP Growth Rate QoQ 0.4% 0.4% 0.50%
2018-05-31 12:30 PM GDP Growth Rate QoQ 0.3% 0.4% 0.3%
2018-08-30 12:30 PM GDP Growth Rate QoQ 0.7% 0.4% 0.6%
2018-11-30 01:30 PM GDP Growth Rate QoQ 0.5% 0.7% 0.3%
2019-03-01 01:30 PM GDP Growth Rate QoQ 0.5% 0.4%
2019-05-31 12:30 PM GDP Growth Rate QoQ 0.5%
2019-08-30 12:30 PM GDP Growth Rate QoQ



Canada GDP Growth Slows to 0.5% in Q3

The Canadian economy grew 0.5 percent quarter-on-quarter in the third quarter of 2018, following a 0.7 percent expansion in the previous period. The slowdown was mainly due to lower household spending. Expressed as an annualized rate, the GDP advanced 2.0 percent, easing from a 2.9 percent growth in the second quarter and in line with market expectations.

Household expenditure rose 0.3 percent, slowing from a 0.6 percent expansion in the previous period, attributable to outlays for durable goods (-0.7 percent), as motor vehicles purchases (-1.6 percent) fell for the third straight quarter. On the other hand, a 1.4 percent rise in outlays for semi-durable goods pushed overall goods spending to 0.2 percent. Household spending on services slowed to 0.3 percent, after expanding 0.8 percent in the second quarter.

Investment in housing dropped 1.5 percent, as investment in new residential construction fell 4.7 percent, the largest decline since the second quarter of 2009. Also, renovation outlays went down (-2.0 percent). Meanwhile, ownership transfer costs rebounded (7.1 percent), after decreasing for two quarters.

Business gross fixed capital formation fell 1.3 percent, following six consecutive quarterly increases, mainly due to a decrease in investment in engineering structures (-2.3 percent), which was partly offset by investment in non-residential buildings (1.3 percent). Additionally, engineering structures dropped due to a deceleration of investment in the oil and gas sector.

Machinery and equipment investment by businesses decreased 2.5 percent, the sharpest drop since the third quarter of 2016. Main contributions to the decline were: aircraft and other transportation equipment (-51.0 percent); industrial machinery and equipment (-2.1 percent); and furniture, fixtures, and prefabricated structures (-2.3 percent).

Business inventory accumulation eased to CAD 6.9 billion from CAD 13.2 billion in the prior period. Retailers reduced inventories, with motor vehicle inventories falling by CAD 4.1 billion in the third quarter.

Manufacturers' inventory increased for both durable and non-durable goods, while wholesalers continued to build up stocks, but at a slower pace. The economy-wide stock-to-sale ratio increased to 0.82.

Imports went down 2.0 percent, with imports of refined petroleum products falling 27.2 percent. The drop in petroleum imports coincided with increased domestic production following the completion of maintenance work at certain Canadian refineries that had reduced output in the second quarter. In addition, purchases of aircraft and other transportation equipment and parts decreased 22.0 percent. Imports of service fell 2.5 percent, mainly on lower demand for commercial (-3.1 percent) and travel (-2.7 percent) services.

Exports increased 0.2 percent in the third quarter, slowing from a 3.1 percent growht in the second quarter. Total goods exports rose 0.4 percent, boosted by higher sales of shipments of metal ores and non-metallic minerals (27.6 percent), reflecting the resumption of operations at mines affected by work stoppages in the second quarter. Exports of services declined 0.8 percent.


Statistics Canada | Stefanie Moya | stefanie.moya@tradingeconomics.com
11/30/2018 2:06:24 PM



Canada GDP Last Previous Highest Lowest Unit
GDP Growth Rate 0.50 0.70 3.10 -2.30 percent [+]
GDP Annual Growth Rate 2.10 1.90 9.30 -4.10 percent [+]
GDP Growth Annualized 2.00 2.90 12.60 -9.10 percent [+]
GDP 1653.04 1535.77 1842.63 40.77 USD Billion [+]
GDP Constant Prices 2059104.00 1891153.00 2059104.00 316042.00 CAD Million [+]
Gross National Product 2206964.00 2195332.00 2206964.00 39836.00 CAD Million [+]
Gross Fixed Capital Formation 441856.00 447557.00 448482.00 52611.00 CAD Million [+]
GDP per capita 51315.89 50407.30 51315.89 17664.20 USD [+]
GDP per capita PPP 44017.59 43238.26 44017.59 30115.28 USD [+]
GDP From Agriculture 34879.00 34803.00 36581.00 22475.00 CAD Million [+]
GDP From Construction 140822.00 141286.00 147533.00 71399.00 CAD Million [+]
GDP From Manufacturing 202727.00 203731.00 218407.00 162048.00 CAD Million [+]
GDP From Mining 148809.00 148909.00 154811.00 99464.00 CAD Million [+]
GDP From Public Administration 129254.00 129057.00 129254.00 82552.00 CAD Million [+]
GDP From Services 1371333.00 1371867.00 1371867.00 752618.00 CAD Million [+]
GDP From Transport 88115.00 88524.00 88939.00 51408.00 CAD Million [+]
GDP From Utilities 44078.00 43920.00 44078.00 31425.00 CAD Million [+]


Canada GDP Growth Rate

Canada's economy is diversified and highly developed. Foreign trade is responsible for about 45 percent of the nation's GDP and the United States is by far the largest trade partner. On the expenditure side, household consumption is the main component of GDP and accounts for 58 percent of its total use, followed by gross fixed capital formation (22 percent) and government expenditure (19 percent). Exports of goods and services account for 32 percent of GDP while imports account for 33 percent, subtracting 1 percent of total GDP. Non-profit institutions serving households' final consumption expenditure and investment in inventories account for the remaining 2 percent. This page provides - Canada GDP Growth Rate - actual values, historical data, forecast, chart, statistics, economic calendar and news. Canada GDP Growth Rate - actual data, historical chart and calendar of releases - was last updated on February of 2019.

Actual Previous Highest Lowest Dates Unit Frequency
0.50 0.70 3.10 -2.30 1961 - 2018 percent Quarterly




Country Last Previous
United States 3.40 Sep/18
South Africa 2.20 Sep/18
China 1.50 Dec/18
India 1.50 Sep/18
Singapore 1.40 Dec/18
South Korea 1.00 Dec/18
Brazil 0.80 Sep/18
Spain 0.70 Dec/18
Canada 0.50 Sep/18
Netherlands 0.50 Dec/18
Australia 0.30 Sep/18
France 0.30 Dec/18
Japan 0.30 Dec/18
Mexico 0.30 Dec/18
Russia 0.30 Sep/18
Euro Area 0.20 Dec/18
United Kingdom 0.20 Dec/18
Germany 0.00 Dec/18
Saudi Arabia -0.05 Mar/18
Italy -0.20 Dec/18
Switzerland -0.20 Sep/18
Argentina -0.70 Sep/18
Turkey -1.10 Sep/18
Indonesia -1.69 Dec/18


Related

Latest