Canada Officially in Recession After 7 Years of Growth
OTTAWA — er seven years of robust growth, Canada’s economy has officially slipped into recession, according to government data released today by Statistics Canada.
The gross domestic product, a wide measure of economic activity, fell for the second consecutive quarter, the generally accepted definition of a recession.
In the July-September period the economy contracted at an annualized rate of 1%, after taking inflation into account. In the second quarter, output also declined, by 1.2%.
“The decline in economic activity under way since the spring has been focused most sharply on business investment,†Statistics Canada said in a statement.
The agency painted a grim economic picture for Canada, saying corporate profits have been falling for 1 1/2 years while high interest rates are making it difficult to finance new projects.
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