Despite the strong increase in public spending compared to the previous quarter, the economy entered contraction, losing 0.3% in the third quarter relative to the last quarter.
Year-on-year, economic activity is still growing by 0.5%. But the detail is unconvincing. With little confidence, households took advantage of the meagre increase in employee compensation (+1.3%) to increase savings, which rose to 5.1% of disposable income. Their household consumption expenditure naturally suffers and stagnates.
At the same time, investment declined, stock accumulation slowed, and exports contracted sharply (-1.3%) due to the sharp decline in hydrocarbon prices that the country exports in large quantities.
This country's growth dynamics differ fundamentally from that of the United States, its great neighbour to the south. Nevertheless, the two economies are highly integrated in the medium and long term, and Canada, rich in raw materials, retains essential assets.
We continue to invest in it as part of our balanced portfolio.