(Paul Vieira — MarketWatch)
Canadian economic growth slowed in the third quarter from the second, but beat market expectations and the central bank’s forecast by a wide margin, led by exports and household spending.
The positive surprise suggested Canada is reaping some benefits from improved U.S. demand and a weaker currency. However, a sharp drop in the price of oil — one of Canada’s biggest exports — hovers over the economy as a wild card that could weigh on growth. Economic weakness in Europe and Japan and a slowdown in China could also reinforce the Bank of Canada’s view that ultra-low interest rates are required for the foreseeable future.
Canada’s gross domestic product expanded 2.8% on an annualized basis in the third quarter, Statistics Canada said Friday. Market expectations were for 2.1% growth, according to a report from Royal Bank of Canada. The Bank of Canada had forecast a 2.3% advance for the third quarter. Read more here.