GDP Turns Negative
This decline was driven by reduced energy production, which partly reflected maintenance shutdowns in the oil patch and unusually mild weather. While those factors may not affect future economic growth, their ability to turn it negative in November underscores how much Canadaâ€™s economic recovery depended on just one industry. Our petro-economy is now vulnerable to any temporary drop in energy production.
A bright spot in todayâ€™s report is the pickup in durable-goods manufacturing. For a third consecutive month, manufacturing output accelerated.
November was the third consecutive month in which Canadaâ€™s overall economic growth rate decreased. The revelation that we fellÂ into negative territory should prompt governments to rethink planned budget cuts. Sharply reducing public investment could push our fragile economy back into recession.
UPDATE (January 31): Interviewed on the Business News Network
UPDATE (February 1): Quoted by the Canadian Press