Commentary
Canada’s economy may manage to escape going into a recession despite economists predicting it would over the last few months. Higher-than-expected growth in the national GDP in the first quarter of 2023 has dampened speculation of an economic contraction. This has led to speculation the Bank of Canada will be raising interest rates again to try and curb inflation.
The economy is doing better than anticipated post-pandemic but it remains fragile. Rash moves by the government could still send it into a tailspin of unintended consequences.
While the federal government is patting itself on the back for the strong economy, it doesn’t like mentioning what has driven this economic growth. Mining, quarrying, and oil and gas were the main drivers of Canada’s economic growth, according to Statistics Canada. At the same time, manufacturing, accommodation and food services, and retail and wholesale trade all declined in the first quarter of 2023….