Canada’s Economy Had ‘Rare’ Economic Retraction in 2023 Despite Absence of Recession: Report

The report by National Bank Financial also warns that hiring in the labour market is not keeping pace with Canada’s population growth.

People cross the intersection at Spadina Ave and Dundas Street in Toronto on Aug. 17, 2023. Canada's GDP per capita contracted by 4.4 percent during the third quarter of 2023, says a report by National Bank Financial. The Canadian Press/Nathan Denette

Canada’s economy experienced an economic retraction in 2023 that is “extremely rare” outside a recession, while at the same time the country sustained record-breaking population growth, according to a report by National Bank Financial.

“Third-quarter GDP data came in below economists’ consensus expectations, showing outright contraction, notably due to a drop in private domestic demand,” said the report’s authors. “Consumption stagnated for the second quarter in a row, a stinging setback in the current demographic context characterized by record population increases.”