In November 2023, Canada's economy saw a 0.2% contraction, exceeding expectations and signaling the largest monthly decline since December 2023, attributed mainly to drops in mining and transportation sectors. Thirteen out of twenty sectors reported declines largely due to work stoppages, particularly impacting transportation and warehousing, which fell by 1.3%. Preliminary forecasts suggest a potential GDP rebound of 0.2% in December, driven by growth in retail, manufacturing, and construction. Despite interest rate cuts, the Bank of Canada revises its growth expectations, recognizing cautious optimism in economic recovery.
Canada experienced a 0.2% economic contraction in November 2023, driven by declines in mining, transportation, and oil extraction, reflecting widespread sectoral challenges.
Work stoppages in transportation and postal services significantly impacted service industries in November, leading to a marked contraction of 1.3% in transportation and warehousing.
Despite an unexpected contraction in November, economists anticipate a rebound in December, forecasting a likely 0.2% increase in GDP, supported by retail and manufacturing.
The Bank of Canada, after interest rate cuts, remains cautious despite indications of growth, revising 2025 GDP growth forecasts downward to 1.8% from 2.1%.
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