Stagnant GDP as economy going through doldrums

Statistics Canada’s latest figures show the nation’s August GDP was lower than expected. Real gross domestic product was flat throughout the summer as inflation, international conflicts and climate events continue to drag down many industries. 

“The economy is clearly stagnating. With these numbers, you could make the argument that we’re in a technical recession, with the third and fourth quarters now expected to be essentially flat, and weaker than the Bank of Canada’s forecast released last week,” Canadian Chamber of Commerce Senior Economist Andrew DiCapua said. “This economic weakness should put a lid on inflation pressures. But we’re dealing with a bit of a mirage, with GDP growth increasingly being fueled by a fast-growing population. That’s concealing a hard truth — that real GDP per person is falling, and poor productivity is expected going forward.”