Canada Enters Recession as Rate Hikes Slow Growth
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Canada's economy stalled in August and likely entered a recession in Q3, indicating interest rate hikes are slowing growth.
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August GDP was flat compared to expectations of a 0.1% increase. July GDP was revised down to a marginal decline.
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Q3 annualized GDP is estimated to have declined 0.1%, marking two straight quarters of contraction.
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High rates, inflation, fires and drought hurt August growth. Goods production declined while services rose slightly.
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Analysts say no more rate hikes are needed with economy underperforming forecasts. Markets see 90% chance rates will be held in December.