In the third quarter of 2024, the Canadian economic system showed growth of 1% year-on-year.
Against the background of the mentioned dynamic of the gross domestic product (GDP) of the specified country, there is a rapid increase in expectations in the foreign exchange markets that next month the Canadian financial regulator will decide on a significant interest rates cut.
Information on economic growth in the third quarter of the current year was published on Friday, November 29, by Statistics Canada. It is worth noting that the recorded result coincided with the preliminary expectations regarding the dynamic of GDP that were observed in the markets. At the same time, the released information testified that the forecast of the central bank of Canada concerning economic growth in the third quarter of 2024 was overly optimistic and provided for a more favorable situation compared to the real state of affairs, although in this case there is no critical or very large discrepancy between estimates in the format of assumptions and the final indicator. The financial regulator predicted that GDP growth for the specified period would be fixed at 1.5%.
It is worth noting that the Bank of Canada has already announced sluggish economic growth. The financial regulator has shown concern about this.
GDP per person basis shrunk by 0.4% in Canada last quarter. It is worth noting that the corresponding indicator is on a downward trajectory for the sixth quarter in a row.
Since June, the Bank of Canada has cut interest rates by 125 basis points. Currently, the cost of borrowing is 3.75%. Against the background of data on economic growth currency markets have increased the probability from 31% to around 44% that next month the Bank of Canada will once again cut interest rates in the third quarter of 2024.
As we have reported earlier, Canada to Invest Millions to Build Chip Network.
