Canada's Economic Downturn: November Slump and Future Prospects

Canada's economy contracted by 0.2% in November due to work stoppages affecting transportation and ports. Despite initial concerns, December shows promise of a rebound with a preliminary 0.2% growth estimate. Interest rates and tariffs could further influence economic forecasts.

Canada's economy revealed unexpected contraction in November, primarily due to stoppages in transportation and ports, according to Statistics Canada.

The gross domestic product fell by 0.2%, a sharper decline than analysts predicted. Industries like mining, quarrying, oil sands, and especially transportation, experienced significant slowdowns.

Looking ahead, Canada's GDP is anticipated to bounce back by 0.2% in December with boosts in retail, manufacturing, and construction. Projections for 2025 have been adjusted down partly due to potential tariff impacts from the U.S. and a decrease in population.

(With inputs from agencies.)