TORONTO (Reuters) - Canada's economy grew as expected at an annualized rate of 1% in the third quarter, according to data released on Friday, helped by household and government spending and partly offset by lower business investments and exports.
For the month of September, gross domestic product increased 0.1%, slower than expected, Statistics Canada data showed. A preliminary estimate showed growth of 0.1% in October.
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NATHAN JANZEN, ASSISTANT CHIEF ECONOMIST, ROYAL BANK OF CANADA
"This is kind of in line with our own base case assumption. We've had a persistent slowing in the Canadian economy, and if you look at kind of forward-looking indicators, like job openings, continuing to decline pretty sharply on balance, there are, at least in the near term, there are some indicators that have still been on the weak side. So it's not surprising to see GDP growth continue to underperform. ... It reinforces that interest rates are higher than they need to be to get inflation sustainably back to 2%."
(Reporting by Anna Mehler Paperny; Editing by Fergal Smith)
