Canada’s economy expands 8.9 percent q-o-q in Q3

Statistics Canada announced on Tuesday that the country’s gross domestic product (GDP) grew 0.8 percent m-o-m in September after a revised 0.9 m-o-m advance in August (originally a gain of 1.2 percent m-o-m).

That was slightly below economists’ forecast for an increase of 0.9 percent m-o-m.

In the third quarter of 2020, the Canadian GDP surged 8.9 percent q-o-q, following a revised 11.3 percent q-o-q tumble in the second quarter (originally an 11.5 percent q-o-q plunge). That was the steepest growth since quarterly data were first recorded in 1961.

According to the report, the q-o-q increase in GDP reflected reopening of the economy, with substantial upturns in housing investment, household spending on durable goods, and exports. These upturns were influenced by favourable mortgage rates, governments' continued support to households and businesses affected by the COVID-19 pandemic, and recovery in major trading partners' economies in the third quarter.

Expressed at an annualized rate, Canada’s GDP climbed 40.5 percent in the third quarter after a revised 38.1 percent contraction in the previous quarter. This marked a record expansion but was worse than economists’ forecast of a 47.6 percent surge.