Canada’s economy shrank 0.1 percent in January, but it wasn’t as bad as economists’ consensus expectations of a 0.2 percent drop. Still, the economy is definitely going through a rough patch and the question is, how bad is it going to get and for how long?
For now, most economists expect the Bank of Canada not to cut rates further in April, as this “front-loaded” weakness was more or less expected.
The main industries contributing to the decline in gross domestic product (GDP) were wholesale and retail trade and manufacturing. The standout industry was mining and oil and gas extraction.
Wholesale and retail factor into the services sector, which fell 0.3 percent—its first decline since February 2014. Mining and oil and gas extraction fall under the goods sector, which grew 0.3 percent.
