Real Estate News

Canadian Gross Domestic Product, Third Quarter and September 2010

Date: November 30, 2010

Canadian Gross Domestic Product, Third Quarter and September 2010

Source: Statistics Canada

Link to Release:

Summary: Canada’s Real Gross Domestic Product (GDP) increased 0.3 per cent in the third quarter for an annualized growth rate of 1.0 per cent. On a monthly basis, GDP declined in September – the second decline in three months. Manufacturing and retail sales were among the positive contributors to the third quarter figure, while exports and housing investment (both down 1.3 per cent) proved to be the largest drags on growth.

Analysis: The third quarter GDP release contained good and bad news. The bad news was a lower than expected overall growth rate which was predominantly driven by trade-related factors – a decline in exports and increased imports. The trade component of GDP has been hampered continued economic problems south of the border and the high value of the Canadian dollar vis-à-vis the US dollar. On the positive side, the third quarter result benefitted from continued growth in consumer spending and the largest growth in business investment since 2005. Thus, while net exports continue to be a drag on economic growth, business investment, which was another is improving. Continued consumer spending and resurgence in business investment should result in improved economic growth rates moving forward.

Source: Toronto Real Estate Board