Canada GDP: Can the recent momentum be sustained into the fourth quarter? – NFB
Data released on Friday showed the Canadian economy recovered further in August with real GDP rising 1.2%. According to National Bank of Canada analysts, going forward, the economic recovery will face important challenges amid the latest surge in COVID-19 cases.
Key Quotes:
“Canadian GDP registered yet another advance in August but the economic recovery remains highly uneven. Some sectors have now fully recovered from the COVID-19 shock and currently stand above their pre-pandemic peaks.”
“While the economic rebound is likely to have extended into September – the Statistics Canada advance estimate suggests production expanded another 0.7% in the month – the steep gap between the best and worst performing industries is likely to endure until a vaccine.”
“Looking further ahead, the real question remains whether the recent momentum can be sustained into the fourth quarter. The latest surge in COVID-19 cases has forced some provincial governments to reintroduce stricter measures which could prove to be a substantial headwind for the recovery in the last three months of the year.”
Author
Matías Salord
FXStreet
Matías started in financial markets in 2008, after graduating in Economics. He was trained in chart analysis and then became an educator. He also studied Journalism. He started writing analyses for specialized websites before joining FXStreet.
